When preparing a bank reconciliation the balance as reported by the bank is adjusted until it agrees with the balance reported in the company's books.

Question

Quizplus · Accepted Answer

In a bank reconciliation, it's the balance in the company's books that is adjusted for items like outstanding checks or deposits in transit, not the balance reported by the bank. The goal is to explain differences between the two balances, not to change the bank's reported balance.

When Preparing a Bank Reconciliation the Balance as Reported by the Bank