Bank Account Closed. Money Not Accessible. What to Do in Wave?

Bytesource

Hello!

Several months ago, Bank of America suddenly closed our bank account without stating a reason. We were told to receive a check over the account balance, but it hasn't arrived yet.

When it comes to Wave, I now have the following problem:
1. Although the bank account is closed, Wave still shows its ending balance.
2. I haven't received the money yet, so I have no way to record a transfer between accounts.

As I need to finalize my books before the end of the day, this problem has been giving me headaches.

My question: What entries should I make in Wave to make clear that the bank account is closed, but its balance is currently not part of the business?

Any suggestions are highly welcome!

AlexL

Hey @Bytesource , I'm sorry to hear about this situation, it's definitely an unusual one...

I'd honestly recommend reaching out to an accountant or CPA. I can't say I've had to advise on anything like this before and I don't want to give you accounting information which puts your business at risk.

Bytesource

Hi @AlexL,

After searching a bit on the Internet, this is what I did in the end:

1. Add income account "Loss on Bank Account Closure"
2. Assets > Bank account: Credit the ending balance.
3. Income > "Loss on Bank Account Closure": Debit the same amount.

When I receive the amount from Bank of America, I'll

• Credit the income account "Loss on Bank Account Closure"
• Debit my new bank account.

Not sure if this is the right way to do it though.

And you are totally right. Asking an accountant would have been the right choice. But because my business has been making so little money this year (I depend on people being outside) I tried to figure it out myself this time.