Reconciling Account Balance

[User11]

Hi,

I am confused as how to best 'reconcile' an account. I am not an accountant and do not fully understand the concept.

I have lost track of small purchases over the years so that now my "cash (wallet)" account and the actual amount of money in my wallet differ by several hundred dollars.

As far as I understand reconciling an account is generally used for a real transaction. Since I do not know how I spent this money (transactions never entered in iCash), how can I best reconcile this difference?

Should I add a fake transaction and reconcile it to make iCash show the true balance? If so, what type of category would this go under (expense, a dedicated 'reconciling' account, etc.)?

Thank you for your time.

 

[stanbusk]

Reconciling is marking a transaction as verified. You usually verify transactions looking at your bank statements or connecting to your bank thru the internet. As a result in order for a transaction to be reconciled it has to be entered in iCash first.