The general ledger reconciliation statement
ID:CVGLRS

Video Overview

When working with the manual, or hand, system of bookkeeping, errors can creep in unnoticed. This means that the bookkeeper needs to make sure that errors and discrepancies are identified and then corrected. Much in the same way that we perform a reconciliation procedure with the creditors and debtors accounts; we can also do a reconciliation procedure for the general ledger accounts. There may be incorrect double entries, missing entries or misallocations, or even incorrect calculations. To make sure our ledger of accounts is in fact reliable financial information, a general ledger reconciliation statement can be drawn up to summarise the process of reconciliation. In practice we will correct the errors by making entries in the general journal, but knowing how to draw up a general ledger reconciliation statement can be useful when wanting to summarise the corrections to the accounts in the ledger.