A brokerage's trust account bank statement shows a balance of $250,000. However, the brokerage's internal trust ledger indicates a balance of $252,500. Upon investigation, a deposit of $2,500 for a recently accepted offer has been recorded in the ledger but has not yet cleared the bank statement. What is the action required by the brokerage?

Question: A brokerage's trust account bank statement shows a balance of $250,000. However, the brokerage's internal trust ledger indicates a balance of $252,500. Upon investigation, a deposit of $2,500 for a recently accepted offer has been recorded in the ledger but has not yet cleared the bank statement. What is the action required by the brokerage?

Answer options: ✅ Perform a reconciliation and identify outstanding deposits and unpresented cheques to ensure the reconciled bank balance matches the trust ledger.

• Immediately transfer $2,500 from the general account to the trust account to correct the discrepancy.
• Adjust the internal ledger to match the bank statement, assuming the bank statement is correct.
• Report the discrepancy to RECA as a possible shortfall.

Correct answer: Perform a reconciliation and identify outstanding deposits and unpresented cheques to ensure the reconciled bank balance matches the trust ledger.

Explanation: RECA Rules Section 48(1) requires a managing broker to reconcile the brokerage's trust account each month, ensuring that the reconciled bank balance corresponds with the balance of all client and individual trust ledgers. This reconciliation identifies and accounts for items like outstanding deposits.