Lesson 3 of 3 · 3 min

Reconciling: match, record, set aside

Tick the bank's statement against your books, line by line, until the bank's balance and yours agree.

Meezan current account → Reconcile
Bank statement · Meezan current account
6 OctCASH DEPOSITTransfer T-0031 · Cash deposit+Rs 150,000.00Matched
9 OctIBFT GREEN VALLEY MARTPayment PAY-0088 · Green Valley Mart+Rs 100,000.00Matched
12 OctSMS ALERT CHARGES−Rs 250.00To match
15 OctIBFT CITY CASH CARRY+Rs 210,000.00To match
20 OctFUNDS TRANSFER REVERSED−Rs 5,000.00Set aside
In your books
Rs 1,486,250.00
The bank's statement
Rs 1,486,000.00
Reconciling is ticking your bank's statement against your books, line by line, so you know both tell the same story. Open the account in Banking, then its Reconcile tab: each line is To match, Matched or Set aside, with your books' balance beside the bank's.
15 Oct · IBFT CITY CASH CARRY · Rs 210,000.00
Payment PAY-0090 · City Cash & Carry · a day later
Payment PAY-0087 · Al-Madina Store · 9 days before
Record itMatch Payment PAY-0090 · City Cash & Carry
Match: under each line to match, Ledger offers what's in your books of the same money near its date, closest first. Press Match on the right one (M matches the first, 1 to 9 another).
From a line to the books
When
SMS ALERT CHARGES
Rs 250.00 out
Then
Record it: An expense
What it was for: Bank & card fees
Result
Record and match
Matched
Record it: nothing in your books is this yet? Press Record it and pick what it was: for money out, An expense, Paid a supplier, Moved to another account or A refund to a customer; for money in, A customer paid, Other money in, Moved from another account or A supplier's refund. Then Record and match: it's dated the line's day and matched as it's made.
Before
Before
In your books Rs 1,486,250.00
The bank's statement Rs 1,486,000.00
The SMS charges, recorded
After
They agree
Both Rs 1,486,000.00
Set aside: for a line that doesn't belong in your books, like the bank's own correction (a transfer it reversed the same day: set both lines aside). Set-aside lines stay out of the books, and Bring back returns one. Money you don't recognise isn't one of those: find out who sent it, then Record it. When every line is matched or set aside, your books and the bank agree.

Try it

Opens Ledger. You'll be asked to sign in first; new businesses get a free week, no card needed.

Open your bank account to reconcile

Quick check

2 quick questions. Pick an answer and Leo will tell you how you did.

1. A line reads IBFT FROM 03XX UNKNOWN, Rs 12,500 in. What do you do?

Set it asideFind out who sent it; if it's a customer, Record it as A customer paid

2. The bank charged Rs 250 for SMS alerts and it isn't in your books. What's quickest?

Record it from the line, as An expenseLeave it: it's small

Try it in Ledger, free for a week

Every lesson's Try it opens the real page, with Leo pointing the way.

Get started Sign in

Free for the first week · no card to start · Rs 1,500 a month afterFree for the first week · no card to start · £5 a month afterFree for the first week · no card to start · $6 a month after