Trial balances and bank reconciliation, Financial Management

Trial Balances:

If the trial balance does not result in a "0", the various records will need to be reviewed to pinpoint the spot where the unbalance occurred and any necessary adjustments will be made.

At various intervals trial balances would need to be drawn up. Trial balances look to the ledgers to ensure that all entries have an equal credit and debit entry. The books are said to balance of the total of the ledgers credit and debit sides equal "0".

Bank Reconciliation:

Once the trial balance is completed and a result of "0" is confirmed, a reconciliation is carried out. The bank reconciliation compares the entries in the organisations books with those outlined in the applicable bank statement. If the two reports match then the books are said to be reconciled.

 

 

 

Posted Date: 10/1/2012 4:31:07 AM | Location : United States







Related Discussions:- Trial balances and bank reconciliation, Assignment Help, Ask Question on Trial balances and bank reconciliation, Get Answer, Expert's Help, Trial balances and bank reconciliation Discussions

Write discussion on Trial balances and bank reconciliation
Your posts are moderated
Related Questions
You must analyze the operating performance of your company. You will use ratio analysis and primarily using Liquidity, Profitability and Working Capital ratios. You will use a g

The main aim of securitization that was initiated in the late sixties was to resolve problems of mismatch and protect the US mortgage financing system from macroe

Determine the advantages of explicit cost Explicit cost of an interest bearing debt will be the discount rate which equates present value of the contractual future payments of

Will you please give the defination of "Future Value Of An Annuity"?

We have seen the valuation of bonds with embedded option using binomial model. This method can be used when cash flows do not depend on how interest rates evolve.

Explain the difference among the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of whole businesses. The

a. Why do prices of low coupon bonds tend to fluctuate more than the prices of high coupon bonds? And why do prices of longer te$ to maturity bonds tend to fluctuate more than th

Why do firms enter an industry when they know that in the long run economic profit will be zero? Firms enter an industry while they suppose to earn economic profit.  These shor

Discuss risk from the perspective of the Capital Asset Pricing Model (CAPM). The Capital Asset Pricing Model, or also known as CAPM, can be employed to calculate the suitable req

Q. Drawbacks or Criticism of MM Approach? Risk Perceptions of personal as well as corporate leverages are different: - It is incorrect to presume that 'personal leverage' is a