Reconciling Bank Accounts
As part of our closing process, we’ve already reviewed all the sub-ledgers that you use to record the details of all your cash transactions—cash receipts journal, cash disbursements journal, and payroll journal. If you missed any transaction, these should now all be posted in adjusting entries to the Cash in Checking account.
If you’ve done everything right and found all the errors, the balance in your bank checking account should match the balance in the Cash in Checking account. Your statement from the bank might not be in yet and you can’t officially close the books until you get that, but you can make sure that at least your internal ledgers all prove out.
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