Journal Entry 2, Uncleared Items
To determine the amount of items that have not yet cleared the bank account, subtract the bank balance on the trial balance from the old accounting system from the Statement Ending Bank Balance. Debit the bank account for the pending items and credit the Bank Contra Account. If the account is negative, reverse the posting. Example: $50,000 subtract $75,000.00 equals $-25,000.00.
Complete this process for each bank account. After all journal entries have been created, the Bank Contra Account should have a zero balance and each bank account should match the trial balance from the old application.
Go to the Chart of Accounts in Orion and unpopulate the Active box on the Bank Contra Account.