The Complete Idiot's Guide® To Accounting

Developing Ledger Adjustments

Any error found during this reconciliation process needs to be properly recorded using balanced entries. For example, suppose Lisa found that a check written to pay for utilities was not recorded in the cash disbursements journal or Cash in Checking. She would correct that during the reconciliation process with this entry.

After you post all your entries, you need to review your closing balances for the sub-ledgers and accounts that were impacted by the corrections.

Even though you’ll be making these adjustments when the bank statement arrives during the next month, the corrections should be posted to the month ...