Accumulated Depreciation

This account reconciliation is a Contra-Asset account type and a Subledger Match reconciliation type. This type of reconciliation is used when matching the balance in the General Ledger to another accounting information system.

In this example, the balance in the General Ledger is being matched with the Fixed Asset system report titled "Month End Balance Summary".

Some integrated accounting systems may have the fixed asset system included in the total software package, but this simple review should still be done at the end of each month to make sure there have not been any errors in setting up the interface between the system modules and to make sure nobody has made a journal entry to the account in error.

Note the description above that states very clearly how the report needed for the reconciliation can be found or created. The report has a title (Month End Balance Summary), a system that creates it (the Fixed Asset system) and a report number (ME888).  You should also note the Company Policy that refers to another document - Policy Number CA124 dated 11/30/99. You could include the complete policy here, if you wanted to. Or if you are a small company, this might be the only place where you document all your policies.

Also note that the Account Number is 15XX. This is showing that the total of ALL the accounts that begin with the number 15 are being reconciled in total. These accounts could be:

• 1500 - Building
• 1510 - Building Improvements
• 1520 - Vehicles
• 1530 - Machinery and Fixtures
• 1560 - Office Equipment

By showing the account as 15XX all of these accounts are being reconciled at once. It is assumed that the Month End Balance Summary report has one amount that will total all these accounts. Of course, if there is an error, it would be in a specific account, such as 1530 - Machinery and Equipment, and should be noted accordingly.

This reconciliation is "picture perfect". The system report agrees with the General Ledger as it is supposed to. The Supporting Document that substantiates the Subledger Balance has been attached. Kim Wilson prepared the reconciliation but it has not yet been approved or reviewed.

The report that would appear when you click the Print Report button is shown here...

This particular account is reconciled with no Unidentified Difference.

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