USA Payroll Journal Entry - Discrepancy Between Bank Statement and Books


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I'm interning in the accounting department of a company. In connection with a bookkeeping assignment, I've been tasked with reconciling various bank statements with what is on the books. In doing so, I noticed a discrepancy of $700, which I brought to the attention of my supervisor. Because I am an intern who is looking to expand my knowledge of accounting, my supervisor has asked for my input on how to go about handling situations like these from an accounting perspective. I've thought about this for hours now and cannot determine the best course of action. I would appreciate any insight you can provide as to potential resolutions I can propose to my supervisor.
 
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BIG E

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A check may have cleared for a different amount than the check was written for.
You need to check that the net amount of check written in the payroll journal is the same as the amount paid by the bank.
 
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Fidget

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It's normal for there to be timing differences between the transactions shown on a bank statement compared with the transactions in the ledger.

As you mention payroll specifically in your thread title, it might well be that somebody has had a salary advance which has gone out of the bank a/c, but is not posted to the ledger. It's also possible that it's not a single $700, but a couple of transactions that total that amount.

As a general thing though, I'm not sure if there is such a thing as a best course of action to pinpoint the reason with bank recs as people will have their own approaches and various things can be the cause of reconciling items.
 

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