Trying to match reconciliation with the trial balance

Why doesn't the reconciliation agree to the TB

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My client has never done a proper bank reconciliation in their Euro bank account and have been passing journals in the Euro Bank Account - don't ask me why.

I have carried out the reconciliation in quickbooks online and it agrees to the bank statement. However, the trial balance is out by £40,000.

I think the problem stems from the journals that was passed using a GBP Exchange rate of £1 to £1 Euro instead of using the correct exchange rate.

I cannot see why if the Euro reconciliation is correct why the Trial Balance in GBP is out by £40K.  I can only think the difference is due to exhange ?

Somehow need to pass a journal without affecting the reconciliation in quickbooks.  Its got very muddled

Any ideas how to rectify this issue would be helpful.  I have tried looking at the dozens of journal but doesnt make much sense. All the payments and deposits have been cleared as at the accounting year end date.

Replies (4)

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By johngroganjga
20th Jul 2016 15:33

The only reason why your TB doesn't balance is that one or more one-legged entries have been entered. That is a universal truth. It is also a universal truth that the only way to make it balance is to find all the one-legged entries and complete them.

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By sash100
20th Jul 2016 16:39

I managed to resolve the issue by running the currency revaluation.

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By tom123
20th Jul 2016 16:41

£40k is a big currency revaluation though? You must have been holding some serious balances?

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By tom123
20th Jul 2016 16:42

or, of course, had quite a lot of transactions passing through

(-- too hot to think straight --)

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