Question

When performing a bank reconciliation, a transaction that was previously marked as reconciled has been deleted, prompting a notification that tells you that the account isn't ready to reconcile yet. What should you do?

1) Re-enter the deleted transaction and mark it as reconciled
2) Ignore the notification and proceed with the reconciliation
3) Contact the bank to resolve the issue
4) Reconcile the account without the deleted transaction

Answer 1

Re-enter the deleted transaction and mark it as reconciled to maintain accurate books and match the bank records. Ignoring the notification or reconciling without the transaction would result in discrepancies. Thus, the option 1 is the correct answer.

Step-by-step explanation:

When performing a bank reconciliation, if a transaction that was previously marked as reconciled has been deleted, you should re-enter the deleted transaction and mark it as reconciled. This action ensures that your books match the bank records, as the transaction was originally part of the reconciled balance. Ignoring the notification may lead to discrepancies between your accounting records and the bank's records. Contacting the bank is not necessary in this case, as the issue is with the accounting records, not the bank's records. Reconciling the account without the deleted transaction would mean that your books are no longer accurate, as they would not reflect all transactions that have occurred.