Final answer:
When you reconcile an account and the difference is not zero, it means that there are unreconciled transactions or errors in the account records. To resolve the discrepancy, you would need to carefully review each transaction and compare it with the bank statement to identify any missing or incorrectly recorded transactions. By identifying and correcting these discrepancies, the account can be reconciled.
Step-by-step explanation:
When you reconcile an account and the difference is not zero, it means that there are unreconciled transactions or errors in the account records. Reconciliation is the process of comparing the account balance in the financial records with the balance in the bank statement. If the difference is not zero, it indicates that there are discrepancies between the two balances.
To resolve the discrepancy, you would need to carefully review each transaction and compare it with the bank statement to identify any missing or incorrectly recorded transactions. Once the discrepancies are identified, they can be adjusted and the account can be reconciled again to ensure that the balances match.
For example, if the bank statement shows a balance of $10,000 while the account records show a balance of $10,500, the difference of $500 would need to be investigated. It could be due to a transaction that was missed or incorrectly recorded, or a bank error. By identifying and correcting these discrepancies, the account can be reconciled and the correct balance can be determined.