Project: clean up a messy set of books
Who asked: Bramble Cove Workshop owner.
Why: Incorrect records distort March profit and prevent a supported bank tie-out.
Data: Existing transactions, bank statement, utility bill and wage note.
Done: Correct source records, reconcile without a plug and check March profit.
Bramble Cove Workshop's owner has a bank statement and several records that do not agree with the source documents. The same rent was entered twice, a routine repair was capitalized and a personal purchase was charged to office expenses. Clean the existing records rather than creating unrelated balancing journals. Each step continues from your own corrected books.
The March statement begins at $10,000 and contains a $3,400 receipt and payments of $800, $150 and $90. A separate $120 old check has not cleared and remains valid. A missing utility bill and wage accrual affect profit without changing this statement. The final deliverable is a checked March accrual profit after all corrections.
Correct a duplicate by removing one copy; correct classification by changing only the affected accounts.
Repair source-level errors and reconcile the supported records.