How do I explain unauthorised bank debits and credits through the books

Question asked by Amanda Parker 6 months ago

Hello There

We have had a number of unauthorised debits from our business account, these have been credited back but I am unsure how to explain the transactions, I do not want to delete them as we would lose the history of the fraud and they will be on the bank statement, can anyone help?

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3 Replies

Hi Amanda,

I would say the best way is to create an account code for this and to assign both the money out and the refund to this account code to demonstrate it was unauthorised. I would also advise definitely speaking to an accountant to be safe.

All the best,

Mohamed.

Hi Mohammed

Thanks very much for this, that makes complete sense I will check with our accountant.

Amanda

Hi Amanda,

Glad I could help.

All the best,

Mohamed.

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