Bank Reconciliation Problem

ricky76

I have a client with a bank rec problem. He correctly applied an amount of £700 to a vendor invoice working from the cheque stubs and everything was fine. However it then came to light that the cheque itself had been written out incorrectly for £650. This then showed on the bank statement as £650. I told him to post the line for £650 as a difference in order to allow the rec through. Obviously posting this as a difference meant that it unapplied itself to the £700 bank account ledger entry. The upshot is next months statement is now in and we still have an unapplied bank ledger entry. Can anyone suggest the best way to sort this out. Any help would be most appreciated.