how to know if the general ledger activity reconciles the trial balance?

Solutions

Expert Solution

Explanation:

1) The general ledger is the complete record of each and every financial transaction that company undertakes.

2) For each and every account separate ledger account is opened up.

3) General ledger reconciliation an internal control procedure that helps ensure account balances in the general ledger are materially correct.

4) This process is done in a particular order.

Beginning Balance verification
Current transaction verification
Adjusting entry verification
Reversal entry verification
Ending balance verification

5) This steps ensure correct amount is reported on correct side i.e Debit or Credit.

6) When posting is done, we can proceed to make trial balance.

8) After posting is done, it becomes easier to make trial balance, as all we have to do is to take out the ending balance from ledger and report it in the trial balance sheet.

7) If the trial balance matches that is total of debits and credit matches, we can conclude that ledger reconciliation procedure has been done correctly.

ekkarill92 answered 1 year ago

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