The bank charged a service charge of $20.How would this information be included on the bank reconciliation?
A)An addition on the book side
B)A deduction on the book side
C)A deduction on the bank side
D)An addition on the bank side

Question

Quizplus · Accepted Answer

The service charge of $20 is a fee charged by the bank to the company's account, and this will result in a decrease in the company's bank balance. Therefore, it should be recorded as a deduction on the book side of the bank reconciliation.

The Bank Charged a Service Charge of $20