Reconciliation error on Charity accounts

mookev

Hi all. i hope this post is in the correct forum. I have been treasurer for my local motorcycle club for 7 years. During this year, i wrote a cheque for £106.50, but in the cheque words wrote One hundred and six pounds only. The bank therefore paid £106. The person recieving the cheque was not worried, but this has created a discrepancy between the cheque stub and expenses claim form , which show £106.50, and the amount shown paid on the bank statement. As I am now preparing the end of year accounts, this will creat a 50p discrepancy between the bank balance differences over the year, compared to the balance of income and expenditure, my gut feeling is to leave it, and when I present to our AGM simply explain the error. I do not feel it is appropriate to alter the cheque stub or claim form. Another committee member suggested we show the 50p as a cash donation to the club. I would appreciate your thoughts on the correct way to proceed.  Thanks .

Owain_Moneysaver

Not "donation".
You can make a correcting entry in your expenses account as a negative expense:

1/10/19 ANOther expenses reimbursed chq100511 £106.50<br>...<br>...<br>31/12/19 CORRECTION chq100511 paid at £106.00 -£0.50

You should strike through the original amount on the cheque stub and put in the new amount (not altering the original amount) to show the cheque was paid at a different value to originally written.
If you have a ledger account for ANOther put in a entry into that as well  as discount received

Purchase Ledger

ANOther<br>=======<br>Invoice 3411 £106.50&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; chq100511 £106.00<br>discount&nbsp; &nbsp; -£&nbsp; 0.50<br>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;-------&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; -------<br>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;£106.00&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; £106.00<br>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;=======&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; =======<br>.

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