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arkvalleyinfo
Oct 16, 2018 1:35 AM UTC
Solved

Check clears for wrong amount

When reconciling my account I have a check that cleared for the incorrect amount. How do I reconcile until we correct the issue this month?

qbteachmt
qbteachmtAnswer
Oct 16, 2018 1:35 AM UTC

I listed Each option, since they simply told us Wrong, and Incorrect.

They did not tell us Higher or Lower.

Other Asset = when you did not get Enough money and will get it later.

Other Liability = when you got money that isn't yours to keep.

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6 replies

qbteachmt
qbteachmtAnswer
Oct 16, 2018 1:35 AM UTC

I listed Each option, since they simply told us Wrong, and Incorrect.

They did not tell us Higher or Lower.

Other Asset = when you did not get Enough money and will get it later.

Other Liability = when you got money that isn't yours to keep.

qbteachmt
qbteachmt
Oct 16, 2018 1:35 AM UTC

Enter an Expense posting to Other Current Asset, if the amount you have is Lower.

Enter a Deposit, posting to Other Current Liability, if the amount is you is Higher.

When you get this settled, do the opposite, as Deposit to Other Asset, to show you got the rest of your money and to clear the additional expense; or as Expense for paying out that liability, for an Overage amount that was never yours to keep.

Malcolm Ziman
Oct 16, 2018 1:36 AM UTC
"if the amount is Lower" must mean the cleared amount is lower, in which case you still owe more money, so it is a liability not an asset.
Malcolm Ziman
Oct 16, 2018 1:36 AM UTC

Create a Check for the actual amount cleared. On the first line enter the amount that it should be and use whatever expense account it was for. On the second line enter the difference either as positive or negative, and use a current asset or liability account respectively. If the check was already created, edit it by adding the second line.

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