Trial balances and bank reconciliation, Financial Management

Assignment Help:

Trial Balances:

If the trial balance does not result in a "0", the various records will need to be reviewed to pinpoint the spot where the unbalance occurred and any necessary adjustments will be made.

At various intervals trial balances would need to be drawn up. Trial balances look to the ledgers to ensure that all entries have an equal credit and debit entry. The books are said to balance of the total of the ledgers credit and debit sides equal "0".

Bank Reconciliation:

Once the trial balance is completed and a result of "0" is confirmed, a reconciliation is carried out. The bank reconciliation compares the entries in the organisations books with those outlined in the applicable bank statement. If the two reports match then the books are said to be reconciled.

 

 

 


Related Discussions:- Trial balances and bank reconciliation

Define floating rate notes, Define Floating Rate Notes Floating-rate n...

Define Floating Rate Notes Floating-rate notes (FRNs) are commonly medium-term bonds along with their coupon payments indexed to some reference rate.  Common reference rates a

Time value of money, TIME VALUE OF MONEY Time value of money can be de...

TIME VALUE OF MONEY Time value of money can be described as the value of a unit of money at different time periods.  It involves that the value of a unit of money is not same

Example on modigliani and miller approach, Q. Example On modigliani and mil...

Q. Example On modigliani and miller approach? The subsequent is the data regarding two companies X and Y belonging to the same risk class: Company X

Simple arbitrage, Simple Arbitrage The easiest arbitrage opportunities ...

Simple Arbitrage The easiest arbitrage opportunities in the option market exist when options violate simple pricing bounds. No option, for example, should sell for less than it

Cost principle - accounting principle, Cost Principle - Accounting Principl...

Cost Principle - Accounting Principle According to this principle all the non-monetary assets of the business are display in the books of accounts at the historical cost that

What do you mean by shares, Q. What do you mean by Shares? Shares: issu...

Q. What do you mean by Shares? Shares: issue of the share is the most important source of the long terms capital. A company can issue various type of the share as the equity an

What do you understand by business cycle, Q. What do you understand by Busi...

Q. What do you understand by Business cycle? Business cycle: business cycle refers to the alternate expansion and contraction in the general business activity. in a period of t

Pvif, how do we get the pvif of a perpetuity

how do we get the pvif of a perpetuity

Advantages of trade credit, Q. Advantages of Trade Credit? i) Easy Avai...

Q. Advantages of Trade Credit? i) Easy Availability: Unlike other sources of finance, trade credit is relatively easy to obtain. Except in the case of financially very unsou

Features of a budget, FEATURES OF A BUDGET a.         It is prepared f...

FEATURES OF A BUDGET a.         It is prepared for a specific period. b.         It is expressed in quantity or money or both. c.         It is a statement describing ob

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd