How to correct a bank teller's error?
by US Business Man
(Missoula, Montana, USA)
Creating an Audit Trail
Hi:
I have a software corporation with finances separate from my personal finances.
I have separate business and personal accounts at the same bank (Wells Fargo).
My wife brought two checks in to a branch today with the separate account numbers written on the back of each check under my signatures. One check was to be deposited in the personal account, and one was for the business account. The amounts are $17,xxx.xx in the business account, and $6,xxx.xx in the personal account.
The bank teller accidentally deposited both checks into the business account.
By the time I found out about it, it was too late have the deposit cancelled, so they did a withdrawal of the full deposit $24,xxx.xx from the business account, then re-deposited the two checks to the proper accounts.
So ... now my business bank statement will show a deposit of $24,xxx.xx
and an immediate withdrawal of $24,xxx.xx, then a deposit the same day for $17,xxx.xx.
How should I handle this in QuickBooks? Should I show the deposit/withdrawal and explain in the comments section? Or should I pretend the the mistake never happened and just book the correct deposit of $17,xxx.xx? And if I'm ever audited, how should I handle this with the auditor?
Thanks!!
Don't panic. When stuff like this happens, make sure you document the "story" when it happens. So yes, enter the deposit/withdrawal in QB and document the "story" in the comments/memo area. Attach a copy of the two cheques if you have them and a snap shot of the bank deposit to your personal accounts to the QB transaction.
Also, if this were to happen again, I recommend you do a bank transfer for the personal amount only .. i.e. just correct the portion of the transaction that was in error.
Comments for How to correct a bank teller's error?
|
||
|
||