After preparing a bank reconciliation,adjustments must be made for items reconciling the bank balance.

Question

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Adjustments must be made in the company's books for items reconciling the book balance, not the bank balance. The bank balance is adjusted on the reconciliation itself for outstanding checks, deposits in transit, etc., but the actual entries to adjust the balance are made in the company's records.

After Preparing a Bank Reconciliation,adjustments Must Be Made for Items