I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART E: PREPARING A TRIAL BALANCE 

 

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2.3.3 The reasons for reconciling items  

Reconciling items may occur as a result of the following items. 

Reconciling item 

Effect 

Status 

Payments in transit 

A payment will go in the payables ledger when 

the cheque is issued or when a bank transfer 

instruction is made. There will be delay (postal, 

processing) before this payment is entered in 

the records of the supplier. Any statement of 

account received by post will also be out of date 

by the length of time taken to deliver it. 

Timing difference 

Omitted invoices and 

credit notes 

Invoices or credit notes may appear in the 

ledger of one business but not in that of the 

other due to error or omission. However, the 

most common reason will be a timing difference 

in recording the items in the different ledgers. 

Error or omission or 

timing difference 

Other errors 

Addition errors can occur, particularly if a 

statement of account is prepared manually. 

Invoice, credit note or payment amounts can be 

misposted. Regular reconciliation of supplier 

statements will minimise the possibility of 

missing such errors. 

Error