In accounting, what does recoincile mean? thank you,?

It means matching up two things to make sure they have the same information on them.

Example: when you reconcile your bank statement to your checkbook, you make sure there's nothing on the statement that shouldn't be there, and that everything's in the checkbook that should be. At the end, the balances will be the same and then you will have "reconciled" (or "balanced") your checkbook to your bank statement.

Every company will maintain a Cash Account in its ledger; similarly the company's bank will maintain a ledger for this company. At the end of every month, bank will send the 'bank statement' to the company. This bank statement is similar to the one that we receive from our bank.

Now the company will verify the amounts on the bank statement with its Cash Account. This confirmation is called 'bank reconcilation'.

Example - There may be cases where the bank will give interests, etc. which the company will not know and thus there will not be an entry in the Cash Account. Here there is a difference between the bank statement and Cash Account. This amount should be adjusted in the Cash Account.

Having this in consideration, 'reconciliation' in general would mean the similar case - compare something with the other and adjust accordingly. If any mismatch is found, then you have work to do!

Merriam-Webster's Dictionary of Law - Cite This Source

Main Entry: rec·on·cile

Pronunciation: 're-k&n-"sIl

Function: verb

Inflected Forms: -ciled; -cil·ing

transitive verb 1 a : to restore to harmony <reconciled the parties> <reconciled the marriage> b : to bring to resolution <reconcile differences>

2 a : to check (a financial account) against another for accuracy b : to account for intransitive verb : to become reconciled; specifically : to voluntarily resume cohabitation as spouses prior to a divorce becoming final with the mutual intention of remaining together and reestablishing a harmonious relationship <denied the complaint for divorce because the parties had reconciled> —rec·on·cil·abil·i·ty /"re-k&n-"sI-l&-'bi-l&-tE/ noun —rec·on·cil·able /"re-k&n-'sI-l&-b&l/ adjective —rec·on·cile·ment noun —rec·on·cil·i·a·tion /"re-k&n-"si-lE-'A-sh&n/ noun

Long answers to a simple qustion.

Reconcile means to be all paid up with a 0 balance on a payment acct.

To make the debits and credits balance out or equal 0

reconcile is when everything equals out. Kind of like when you do your bank statement.