A nostro difference and a missing fee
A fictional nostro reconciliation starts with an agreed opening balance of 1,000,000 currency units. The internal ledger records an incoming payment of 250,000 and an outgoing payment of 100,000. The correspondent statement shows both payments and a separately identified fee of 500 units. The ledger has not recorded the fee. A staff member proposes booking an unidentified adjustment merely to make the displayed totals agree. The transaction records, fee reference and statement are available for review. The exercise assumes no other transactions, exchange differences or timing items, but it does not give general authority for a real accounting entry. Students must calculate the two closing balances, identify the supplied explanation and describe the controlled correction needed after verification.
1. Calculate and explain the difference.
Read the worked answer
The ledger closes at 1,150,000 units. The statement closes at 1,149,500 after the supplied fee. The 500-unit difference matches that fee under the stated complete model.
2. What should the team do?
Read the worked answer
Verify the fee and supporting reference, then make the authorized attributable entry and retain the reconciliation evidence. Do not use an unexplained balancing adjustment.