In an accounting IT system, if you have unpreseneted cheques GL and the bank recons are done automatically through bank statements uploads, where are transactions that are not in the GL but appear in the bank statement likely to be posted?
Thanks again and my apologies for the ambiguity.Basically, you're dealing with "checks outstand", and accounted for internally by you.
With respect to your trail balance, yes it will balance because all your internal entries deal with your internal
accounting, not the bank/clearing house, etc.
As far as presenting checks in another accounting period, and included -or - cleared by the bank, and stated in your bank's closing balance, remember that you're dealing with two different points in time.
What might be confusing to you is the time lag between presentation, clearing, and statement presentation that you're trying to reconcile. These time lags are not that difficult to account for, if you keep it simple and define your reconciliation schedule reconciles - first portion reconciles to the cash account, the second portion reconciles to the statement. When you see mismatches, then and there is your point of reasoning and fact-finding.
I'm not familiar with " utilities company with liability clearing accounts", so my suggestions are limited, I know.
However, what's a little confusing is:
...these cheques being presented on the system in Jan 2019. The actual presentation to the bank was in 2018 though.
Could you explain the presentation part on what system, compared to actual presentation?
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