The ledger balance is the total amount of funds in an account at the beginning of a business day. The deposits and debits that take place throughout the day determine an account's available balance.Continue Reading
Most banks operate from business day to business day, meaning that transactions that happen throughout the day are not figured into the total numbers until the next business day. Such transactions may be recorded as pending to an account.
After the close of the business day, the account amounts are recalculated based on the addition or subtraction of funds throughout the day. The new amount becomes the ledger balance on the following business day.
In some instances, banks only differentiate the ledger balance from the available balance by deposits made to an account on a given day. In this way, a ledger balance is only guaranteed to be accurate at the moment that it is posted.
Most banks impose a hold period on newly deposited checks to insure that they clear the banks on which they were written. Because ledger balances differ from available balances, it is not uncommon for bank customers to become confused about the amount of funds that are available in their accounts.Learn more about Accounting
Standard tick marks used in auditing provide abbreviated notations to footnote numbers in a column that were manually added, computations that were verified and amounts traced to the ledger balance, according to Accounting Tools. Assets confirmed, cancelled checks and supporting documents examined are also notated by standard tick marks.Full Answer >
"Miscellaneous expense" is a general ledger account used for small expenses not recorded in other accounts, according to the accounting dictionary on Simplestudies. Accounting Coach notes that it is generally better to set up a more specific expense account than to list an expense as miscellaneous.Full Answer >
A treasurer's report outlines the name of the organization, the period the financial report covers, the balance at the beginning of the reporting period, and the income received during this period, according to Energize, Inc. It details the expenses incurred and the cash balance at the end of the reporting period, and closes with the signature of the treasurer.Full Answer >
Even when such funds contain only cash, bond sinking funds are listed immediately after the 'current assets' on a balance sheet. The asset is part of the 'long-term asset' section and typically found under the "Investments" heading, according to the financial experts at AccountingCoach.com.Full Answer >