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2018 Reconciliation & Adjustments Needed to Balance  

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(@jennafer)
Joined: 9 months ago
Posts: 19
21/06/2020 4:35 pm  

Hi there!

I have a new client that hasn't reconciled their credit card accounts since 2018. Since the last reconciliation, one of the transactions was deleted and I need to add it back to balance. It was a "transfer" and I can't tell from where. If I create a journal entry, what accounts to I credit/debit?

Taxes have already been paid so I don't want to change the numbers from 2018. I am assuming I might find more discrepancies. Should I create a gl account for adjustments so it can be identified in this years taxes?

 


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 Casey Stokes
(@Casey Stokes)
Joined: 7 months ago
Posts: 19
21/06/2020 6:46 pm  

Yes, you can make an Other Exp/Inc account called Prior Period Adjustments, or something along that line.  I then usually point this out to the CPA, so they can decide where best to post something, and include with their YE AJE's.


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(@jennafer)
Joined: 9 months ago
Posts: 19
22/06/2020 2:16 pm  

Other exp/inc account, great idea! Thank you Casey!

 


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