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Reconciliation error on Charity accounts

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Reconciliation error on Charity accounts

1 reply 61 views
mookevmookev Forumite
42 posts
Seventh Anniversary 10 Posts
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 .

Replies

  • edited 3 March at 12:19PM
    Owain_MoneysaverOwain_Moneysaver Forumite
    11.2K posts
    Tenth Anniversary 10,000 Posts Name Dropper
    ✭✭✭✭✭
    edited 3 March at 12:19PM
    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
    ...
    ...
    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
    =======
    Invoice 3411 £106.50            chq100511 £106.00
    discount    -£  0.50
                 -------                      -------
                 £106.00                      £106.00
                 =======                      =======
    .
    .
    A kind word lasts a minute, a skelped erse is sair for a day.
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