Incorrect payment transfer

Good morning,

Sorry, I am having a total mind blank. I underpaid an employee in February (reckon hosted is the correct figure, I just transferred the wrong amount to her account) and then paid the employee the difference in March, how do I reconcile the bank account for February? Is a journal entry the only way using a clearing account? I thought I could just do a deposit using the wages account in Feb, and then in March write a cheque using the same wages account? Changing the pay in Reckon isn't an option due to super, tax etc.

Eg - Reckon showing $1500 for wages for that employee but bank statement is $1,000. Paid the $500 in March.

Many thanks.

Accepted answers

MichelleGraves

Thanks, worked it out - journal entry creating a new current liability account Wages payable and then debit wages payment and credit bank. I was getting confused as I didn't want it to affect the wages expense account but it won't if I create the current liability account.

Kris_Williams

no I amended my post to entering a deposit as the lesser amount came out of the bank. But after the adjustment cheque is processed you can delete the original deposit

All comments

MichelleGraves

Kris_Williams

you can enter a deposit in February and put it to a suspense account and then delete it when it comes through in March or just wait until it comes through and reconcile at that date.

MichelleGraves

Thanks Kris - that's the way I was originally heading, but then I became confused about entering the cheque. So I would enter the cheque in March (where I paid the shortfall), but then in Feb wouldn't I need to enter a deposit to the bank? (seeing as the amount in the bank rec for Feb is short, so I need to offset that with a credit so I can reconcile the correct amount as per what came out of the bank?).

Kris_Williams

no I amended my post to entering a deposit as the lesser amount came out of the bank. But after the adjustment cheque is processed you can delete the original deposit

MichelleGraves

Great - that's exactly what I was going to do and then thought I wasn't doing it right. I will do it this way which is alot easier than journal entries - thanks so much!

Kris_Williams

definitely easier, you’re very welcome

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