How To Reconcile Accounts Receivable - Definition And Meaning
The process of matching the total of closing balances of Accounts Receivable Subsidiary Ledgers with the closing balance of Accounts Receivable Control Account is called accounts receivable reconciliation. When there is a difference between accounts receivable control account’s closing balance and total of accounts receivable su bsidiary ledgers’closing balances for the accounting period, then such difference between these two Types of Ledgers is to be reconciled. Such differences occurred due to errors, mistakes or frauds, etc. In that case, there is need to check individuals ledgers accounts and control ledger account to remove the differences. Example Mr. A, Mr. B And Mr. C are the customers of Company XYZ. Following are the transactions taken place with these customers shown below: 2019 June 1. Sold Goods worth Rs. 30000 On Credit To Mr. A 2. Sold Goods worth Rs. 20000 To Mr. B On Account 3. Sold Goods worth...