An NSF cheque should be added to the bank balance on a bank reconciliation.

Name: An NSF cheque should be added to the bank balance on a bank reconciliation.
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Question

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An NSF (Non-Sufficient Funds) cheque is a cheque that cannot be processed because the account it is drawn on does not have enough funds. In a bank reconciliation, an NSF cheque should be subtracted from the book balance, not added to the bank balance, to reflect the decrease in the depositor's available funds.

An NSF Cheque Should Be Added to the Bank Balance