An NSF cheque should appear in which section of the bank reconciliation?
A) Addition to the balance per bank.
B) Deduction from the balance per books.
C) Deduction from the balance per bank.
D) Addition to the balance per books.

Question

Quizplus · Accepted Answer

An NSF (Non-Sufficient Funds) cheque is a cheque that has been returned by the bank because the account it was drawn on does not have enough funds. It should be deducted from the balance per books because it was initially recorded as a deposit but needs to be reversed.

An NSF Cheque Should Appear in Which Section of the Bank