How do I enter historical outstanding bank transactions without affecting expense accounts? This is the first bank reconciliation and not connecting to bank.

bcschoolsports · ‎August 16, 2021

In my previous Trial Balance, the Bank Register was included, not the Bank Balance. Since we are not using online banking, can I enter the transactions as journal entries to the Bank and Opening Balance Equity? This will change the Opening Balance Equity from the actual bank balance to the Register Balance.

PrachiJoshi · ‎August 16, 2021

Hi,

I am not sure what do you mean by previous trial balance. Is it last fiscal year's trial balance or this year? Why bank balance was not included? How did the trial balance balanced without the bank balance? All of these questions have to be explored before making an entry.

I would recommend to connect with an accounting professional.

Thanks

Prachi

bcschoolsports · ‎August 24, 2021

I guess I did not post my question clearly. I am about to do my first bank reconciliation in Quickbooks Online. We are transferring our data manually from another program. I was instructed to enter June 30th actual Bank balance as the Opening Balance as that is the last reconciliation that I did in our old program and Quickbooks online is starting July 1st. That would be the actual Bank Balance at the beginning of July 1st. On my June 30th Bank Reconciliation I had several cheques still uncleared. I was asking how to enter them without affecting the Opening Balance or Expense accounts. What I ended up doing was making Journal Entries as of July 1st with the description containing the actual date and cheque number and offsetting the Bank Account with Opening Balance Equity. This worked as long as I marked my original Opening Balance as Reconciled before I started the Reconciliation.

@PrachiJoshi wrote:
Hi,

I am not sure what do you mean by previous trial balance. Is it last fiscal year's trial balance or this year? Why bank balance was not included? How did the trial balance balanced without the bank balance? All of these questions have to be explored before making an entry.

I would recommend to connect with an accounting professional.

Thanks
Prachi

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How do I enter historical outstanding bank transactions without affecting expense accounts? This is the first bank reconciliation and not connecting to bank.

How do I enter historical outstanding bank transactions without affecting expense accounts? This is the first bank reconciliation and not connecting to bank.

How do I enter historical outstanding bank transactions without affecting expense accounts? This is the first bank reconciliation and not connecting to bank.

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