At month-end, the Bank Statement Balance and your Cash Ledger Balance rarely match. Route each item to reconcile the books!
Item: 1/6
Score: 0
Streak: 0 🔥
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Reconciliation Balanced!
Score:
Lesson: Bank Reconciliation Rules
Bank Side: Items the company recorded that the bank doesn't know about yet (Deposits in Transit: +Add, Outstanding Checks: −Deduct).
Book Side: Items the bank processed that the company didn't know about yet (Bank Collections/Interest: +Add, Service Fees/NSF Bounced Checks: −Deduct).
Golden Law: Only reconciling items on the Book Side require adjusting journal entries on the company ledger!