Bank service charges would be shown on a bank reconciliation as:
A) addition to the balance per bank statement.
B) deduction from the balance per bank statement.
C) addition to the balance per books.
D) deduction from the balance per books.

Question

Quizplus · Accepted Answer

Bank service charges are expenses recognized by the business when the bank deducts them from the account. Therefore, they reduce the cash balance in the company's books, necessitating a deduction from the balance per books to reconcile with the bank statement.

Bank Service Charges Would Be Shown on a Bank Reconciliation