To answer +divinenutrition's question, the book balance subtracted $3 too much on check 1256. In order to fix that error, we must add $3 back (-$675 + $3 = -$672)
thanks for your explanation it helps me a lot i have question when you doing on book side why you mines and add number, i mean how to know what to add or what to mines
+Nidaa Mohammed add if it would increase the balance and subtract if it would decrease the balance. For example, if there is a check that was not recorded and you had to record it, it would make the balance in the account go down so you would subtract it.
thapelo matebele since the check cannot be deposited until the date on the check, it is not cash until that date. Therefore, I would not record the check until you have the right to the funds.
First off, great work! Now I have a clearer understanding on BR. But I'm a little confused on the $3.00 difference ($675.00 & $672.00) If the company made the error, how come the $3.00 is a add item instead of a deduct/less item on the company's books? Ive notice you answered divinenutritions, but Im have problems understanding that breakdown. Thank you for your help!!
The company removed $675 from its account balance, but it should have removed $672 from its balance. Therefore the balance should be $3.00 higher than what the company records currently show. Let's say the balance was $1,000 before the check cleared. Subtract $675 and the balance is $375, but we should have subtracted $672, leaving a balance of $378. To get the balance from $375 to $378, we must add $3.
Kristin Ingram Hi Kristin, it sounds like if the bank has a lesser amount than the book, the $3 is added on the books end. Maybe I’m wrong or is it right? Thanks again!
If my last comment was right, if the bank made the mistake, and the bank has a greater amount than the books, would that $3 be a add or a deduct? And on which side, (Bank or Books?).
Kristin Ingram I still don’t get it 😔 it’s not your explanations, it’s me not understanding it. I don’t want to keep bordering you on some thing that is simple to understand. But thank you sooooo much for your help! And once again great video.
This is incorrect. Whether accrual or cash, in the end the book balance needs to match the closing bank balance. You can't change the bank balance. You must adjust the book to match transactions that were not recorded, and when reconciling the book to the bank you must add outstanding checks in the book which results in the book balance equaling the ending balance. (Source, I'm an accountant at a public firm).
Jerod. I'm a CPA and an accounting professor. This is not how it is taught in the classroom or how it appears on the CPA exam. Items are added and subtracted to both the book and bank balance. In the end, both balances must agree with each other, but the book balance is not adjusted to the bank balance.
@@allkristiningram Thank you. Good Job. Jerod Tabor wants only one side of the reconciliation done, which is the Bank side only. And he said ""You cannot change the bank balance"" Why? Who told him that? It is like wearing a sunglass on a hot bright day, but your right or left glass is missing. And he started his comment by saying ""This is incorrect."" People want to know what is in their Book which is not in their Bank St and what is in their bank St which is not in their book.
Hi Kristin, great video. A question...can we adjust the missing amounts in the next months books?
so thankful for ur videos, i wish u were my prof 🥺
So glad they are helpful!
@@allkristiningram ❤️❤️❤️❤️❤️
Kristin, thank you so much,God bless.
You really made Accounting easier .
You're welcome, Thomas! So glad I could help.
To answer +divinenutrition's question, the book balance subtracted $3 too much on check 1256. In order to fix that error, we must add $3 back (-$675 + $3 = -$672)
+divinenutrition You're welcome!
You always excellent! . Please I need a lesson about (accounts receivable factoring) . Thanks very much.
Noted! Thank you!
Very helpful! Thank you !
Glad it was helpful!
You are heaven sent, God bless you
Thank you Adam. I'm so glad I could help.
Great video! hopefully I pass my exam tomorrow now!
+Jacob Vican thank you. Good luck with your exam.
you explained very clear !! really help me a lot thank you !!!
You're welcome. Thanks for commenting. I appreciate it.
Thanks Kristin..do a suspense account video
Your welcome!
This was way helpful thanks a lot
You're welcome! Glad I could help!
Based on your example, is there a certain way to identify what belongs to the outstanding checks category and what doesn’t?
Thanks,
If the checks do not appear on the bank statement, they are outstanding.
thanks for your explanation it helps me a lot i have question when you doing on book side why you mines and add number, i mean how to know what to add or what to mines
+Nidaa Mohammed add if it would increase the balance and subtract if it would decrease the balance. For example, if there is a check that was not recorded and you had to record it, it would make the balance in the account go down so you would subtract it.
Kristin Ingram I see thanks slot for your quick response
+Nidaa Mohammed you're welcome. Glad I could help!
Great video! Thank you!
You're welcome. Thank you for leaving a comment.
hi! jst wanted to ask how do you record a post dated cheque
thapelo matebele since the check cannot be deposited until the date on the check, it is not cash until that date. Therefore, I would not record the check until you have the right to the funds.
First off, great work! Now I have a clearer understanding on BR. But I'm a little confused on the $3.00 difference ($675.00 & $672.00) If the company made the error, how come the $3.00 is a add item instead of a deduct/less item on the company's books? Ive notice you answered divinenutritions, but Im have problems understanding that breakdown. Thank you for your help!!
The company removed $675 from its account balance, but it should have removed $672 from its balance. Therefore the balance should be $3.00 higher than what the company records currently show.
Let's say the balance was $1,000 before the check cleared. Subtract $675 and the balance is $375, but we should have subtracted $672, leaving a balance of $378. To get the balance from $375 to $378, we must add $3.
Kristin Ingram Hi Kristin, it sounds like if the bank has a lesser amount than the book, the $3 is added on the books end. Maybe I’m wrong or is it right? Thanks again!
If my last comment was right, if the bank made the mistake, and the bank has a greater amount than the books, would that $3 be a add or a deduct? And on which side, (Bank or Books?).
No, the bank is showing a higher balance because the bank only withdrew $672 for the check, while the books withdrew $675.
Kristin Ingram I still don’t get it 😔 it’s not your explanations, it’s me not understanding it. I don’t want to keep bordering you on some thing that is simple to understand. But thank you sooooo much for your help! And once again great video.
This is incorrect. Whether accrual or cash, in the end the book balance needs to match the closing bank balance. You can't change the bank balance. You must adjust the book to match transactions that were not recorded, and when reconciling the book to the bank you must add outstanding checks in the book which results in the book balance equaling the ending balance. (Source, I'm an accountant at a public firm).
Jerod. I'm a CPA and an accounting professor. This is not how it is taught in the classroom or how it appears on the CPA exam. Items are added and subtracted to both the book and bank balance. In the end, both balances must agree with each other, but the book balance is not adjusted to the bank balance.
@@allkristiningram Thank you. Good Job. Jerod Tabor wants only one side of the reconciliation done, which is the Bank side only. And he said ""You cannot change the bank balance"" Why? Who told him that? It is like wearing a sunglass on a hot bright day, but your right or left glass is missing. And he started his comment by saying ""This is incorrect."" People want to know what is in their Book which is not in their Bank St and what is in their bank St which is not in their book.