video1.0<iframe src="https://www.loom.com/embed/17bd0b93944644cf97871bcbc278c4e6" frameborder="0" width="1920" height="1440" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>14401920Loomhttps://www.loom.com14401920https://cdn.loom.com/sessions/thumbnails/17bd0b93944644cf97871bcbc278c4e6-b016561b38d542b6.gif512.32This Loom explains how to understand and reconcile a trust account balance by matching total liabilities to cash. It covers the liability side, called allocations in Clearing, broken into owners, management commissions, tax, advanced deposits, security deposits, and excluded or unaccounted for, which should be zero. It then reviews the cash side, including cash in the main and reserve trust accounts plus cash in transit, and shows that liabilities minus cash minus cash in transit should net to zero. It illustrates with a $50,000 liability example against $48,400 cash and $1,600 cash in transit, and explains common reasons for discrepancies such as unreconciled bookings, cancelled bookings, or an over or underfunded trust requiring an audit. Finally, it gives a cash in transit booking scenario where a March 31 recognition is received in the bank on April 1.