ACC205 Week 2 Discussions and Responses.docx

Wainwright ed 2012 i too believe that just writing

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checks, other activity and balances) with the cash amount contained in the company records.” Wainwright, (Ed.). (2012). I too believe that just writing off discrepancies found would leave some one accountable. Thanks for the response.
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Wainwright, S. K. (Ed.). (2012). Principles of Accounting: Volume I [Electronic version]. Retrieved from Discussion 2 Response 2 What is the purpose of a bank reconciliation? What are the reasons for differences between the cash reported in the accounting records, and the cash balance in the bank statements? Analyze several of your peers’ posts. Let at least two of your peers know what happens to the discrepancies between the book balance and the bank balance. Could these differences just be written off? Saul Wrote Bank reconciliation is defined in our text as "The process needed to identify errors, irregularities, and adjustments needed to the cash account" (Wainwright, 2012, Ch.4.2). It is the cash handling process business use to make sure that what they have on record matches the bank statement. It allows business to gain a further understanding of how much cash they have. Some of the reasons for the differences between the cash recorded on both records can include transactions that the firm has taken into consideration, but the bank has not like outstanding checks that have not cleared or deposits in transit. It's very important that adjustments are made when necessary to avoid having cash handling issues. Wainwright, S.K. (Ed.). 2012. Principles of Accounting: Volume 1 [Electronic version]. Retrieved from My Response Your post was to the point! The book balance which is what is used to compare to the bank balance records, and the bank balance records must always be the same. If there is a discrepancy it will be found during the bank reconciliation. "The process needed to identify errors, irregularities, and adjustments needed to the cash account" (Wainwright, 2012, Ch.4.2). The discrepancies are found in the bank reconciliation process, so I don’t believe it they can be just written off because someone would have to be held accountable for it, but during the reconciliation the error should be found, for this it the purpose of the reconciliation. Good Post! Wainwright, S.K. (Ed.). 2012. Principles of Accounting: Volume 1 [Electronic version]. Retrieved from
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