adjusting entry

astarling · #1 Mar 16, 2008, 06:53 PM

At year end, there was a total of 250,000 in sales deposited during the year, but not recorded. What would be my adjusting entry?

NoOtherLove · Mar 16, 2008, 07:40 PM

What was not recorded - the sales, the deposits, or both?

astarling · Mar 17, 2008, 04:47 AM

NoOtherLove · Mar 17, 2008, 05:54 AM

To record the deposits:

DR Cash in bank 250,000

To record the sales:

CR Sales 250,000

Is there any bank reconciliation being performed every month? Surely, the deposits would appear in the bank statements which did not appear in your books. Tracing back the source transaction would have revealed the unrecorded sales.

I hope this solves your problem.



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