What is the reconciled account balance?

Reconciliation is the process of comparing information that exists in two systems or locations, analyzing differences and making corrections so that the information is accurate, complete and consistent in both locations. Balance sheet accounts must be reconciled on a periodic and timely basis to verify that all items were correctly posted to the account. All funds within the balance sheet account must be included in the reconciliation unless previous arrangements have been made. Without performing reconciliations, inaccurate recording of transactions may occur that would result in incorrect reporting and could impact resources.

Nevertheless, preparing of the reconcilation of accounts required documentation:

Prepare a separate work paper for each balance sheet account to document the reconciliation. The work paper must contain the following information:

1. The balance sheet account number and account name.
2. A statement of purpose for the account.
3. A brief description of the debit/credit activity that normally processes through the account.
4. The accounting period for which the analysis is being completed.
5. Key as to the presentation in the account (e.g., is credit shown as a positive or negative number).
6. Activity for the period - presentation will be determined based on the nature of the account and the volume of activity that is recorded monthly in that account.
7. Substantiation of the account's ending balance through review of underlying supporting documentation.
8. The name and phone number of individual preparing the reconciliation.
9. The date the reconciliation was completed.
10. A list of contact names and phone numbers/email addresses for questions relating to the account.
11. Keep account information updated for changes in processing and other information.

The balance that u get after preparing the bank reconciliation statement. The difference betwen the original statement could be due to cheques deposited not yet credited by thge bank or payments made by cheque but the cheque not yet presented for payment by the party concerned.

If its a Bank account than Bank AC credit balance equals to Balance Sheet GL's Dr Balance.