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Ready to finish reconciling because the beginning & ending balances match as well as the deposits & withdrawals. I noticed there is an amount of $1,633.72 in difference field when it should be zero. Ending & cleared balance match also. I don't get it.
Solved! Go to Solution.
If there is a difference, the means the sum of the transactions you've marked as cleared does not add up to the ending balance entered.
The formula is:
Beginning Balance + sum of activity = Ending Balance.
...or, with more detail:
Beginning Balance + sum of deposits - sum of payments = Ending Balance.
So, if the beginning balance matches your statement, and if you entered the correct ending balance from the statement, then if there is a difference, either the sum of deposits or the sum or payments must be different than what actually cleared the bank for the statement.
If there is a difference, the means the sum of the transactions you've marked as cleared does not add up to the ending balance entered.
The formula is:
Beginning Balance + sum of activity = Ending Balance.
...or, with more detail:
Beginning Balance + sum of deposits - sum of payments = Ending Balance.
So, if the beginning balance matches your statement, and if you entered the correct ending balance from the statement, then if there is a difference, either the sum of deposits or the sum or payments must be different than what actually cleared the bank for the statement.
Yes you are absolutely right! Thank you! I looked at my figures again & what do you know, the ending balance on statement had a negative value & I entered a positive value in QB for ending balance. I don't know how I didn't catch that. Tired eyes I suppose. Thanks again!!
Yes, you are absolutely right! I went back & looked at my figures & what do you know. For ending balance in QB I entered a positive value when the bank statement had a negative value as ending balance. I don't know how I missed that. Tired eyes I suppose. Thank you so much for your help!
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