Taking on bank balances

Handling Bank Balances in the Trial Balance

When you generate a trial balance, the bank balance shown represents a reconciled bank balance. This includes transactions that have been recorded in your accounts but have not yet cleared your bank account.

You must account for these outstanding transactions. For example, if you wrote a cheque on February 20, but it hasn’t cleared by your take-on date of February 28, you need to make an adjustment. When the cheque eventually clears, your bank balance will change, and you cannot capture it again since it has already been recorded.

How to Adjust Your Bank Balance

1.Use the bank balance as per your bank statement.

2.Include all unreconciled cheques and other outstanding transactions.

Example:

•Bank statement balance: R20,000

•Outstanding cheques: R3,000

•Reconciled bank balance (trial balance value): R17,000

When capturing the batch, process the adjustment accordingly.

To do this, navigate to Ledger > Adjustment Journal, then click New Batch.

Click on Post to capture the journal entries