The bank statement reveals an EFT payment made to one of the company's suppliers that has not yet been recorded in the ledger. How would this information be included on the bank reconciliation?
A)A deduction on the book side
B)A deduction on the bank side
C)An addition on the bank side
D)An addition on the book side

Question

Quizplus · Accepted Answer

The EFT payment is an expense that has been deducted from the bank balance but not yet recorded in the company's books, so it needs to be deducted from the book side to reconcile the balances.

The Bank Statement Reveals an EFT Payment Made to One