Balance sheet reconciliation

A/c entries 2010 views 6 replies

In a job advertisement I saw recently the advertiser had mentioned that the candidate should be good in - Balance Sheet reconciliation.

 

Can anyone please let me know what is Balance Sheet Reconciliation and how it is done?

 

Thanks.

Replies (6)

Balance sheet reconcliation maens reconcliation of Intercompanies transation , Debtor balance reconcliation, Creditior balance reconcliation , reconcliation of control accounts, reconcliation of intor companies transactions. 

Thanks Mehul Sir.

 

1) please let me know whether Debtor and Creditor balance reconciliation is any way different from reconciliation of control accounts. If yes, in what way?

 

2) In a computerized environment is there a need for reconciling control accounts ? I was under the impression that control accounts are always reconciled automatically in  computerised environment.

 

Dear Anil,

Terminology in use may differ whether Balance Sheet Reco, GL Reco, Accounts Reco, etc...

Its' very important and major function as far as financial accounts and books maintenance is  concerned. It includes primarily the maintenance of all sorts of accounting details in a structured and systematic format on which basis the inputs are generated to Financial Statements: Balance Sheet, P&L Account including the Groupings and Reconciliation of Subsidiary Ledgers to Main GL.

1) Debtor and Creditors are not part of control accounts 

2) Control accounts are only for inter branch or inter division reconcliation.

3) control accounts not always tally automaticaly.

4) if say mumbai branch pass jv for income accruel on delhi branch then same entry has to be pass by delhi branch.

otherwise inter branch accounts will not tally

5) debtors and creditors reconcliation also includes if amount received from debtors by other division then they have to pass trf entry to respected divisions. in case of creditors vice-versa 

Thanks Ashutosh Sir for your views on the topic.

 

Would it be possible to give me an example of when a subsidiary and main GL control account do not tally in a computerised environment?

 

 

 

 

 

Thank you Mehul Sir.

 

Till now I was under the impression that -

 

1) Whenever the term " Subsidiary ledger" was used, I thought it means Receivables or Payables ledger where one can find entries relating to Debtors and Creditors

 

2) summary of above mentioned subsidiary ledgers appear in main ledger i.e., General ledger.

 

3) The summary account appearing in GL mentioned in point (2) is called Control account

 

4) These control account maintained in GL always tally with Subsidiary ledgers mentioned in point (1) in a computerized environment.

 


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