I am having a problem, I am currently doing the accounts or trying to the accounts for this year and have just discovered a problem :-s. The Bank was £5208.03 at year end 10/11 when it was suppose to be at 7458.93, I have just discovered the difference which was a outstanding cheque for rent £2250 which was paid out on 19th Dec 2011 but only appeared in the bank statement after the year end in 4th January 2012.
I am using VT to do the accounts so how can I sort this out beacuse now the bank wont reconcile for this year becasue my opening bank balance was out by £2500.
From what you've said, there shouldn't be a problem. The accounts at the year end should reflect unpresented cheques and outstanding lodgements, so a VT balance of £5,208 is correct (the balance per the bank statement - £7,459 - less the outstanding cheque of £2,250 (NB: I'm ignoring the 90p difference in your workings)). I don't use VT but it would have shown the £2,250 cheque as being unreconciled at the year end and you would then have reconciled the transaction when you reconciled the January bank statement.
The bank balance on VT might be out in the current year if you posted the £2,250 cheque again on 4 January 2012 as this would mean that VT was still showing the original posting as being unreconciled.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
