After preparing the bank reconciliation, journal entries must be prepared for:
A)any errors made on the books revealed by the bank reconciliation.
B)any errors made by the bank revealed by the bank reconciliation.
C)deposits in transit.
D)outstanding cheques.

Question

Quizplus · Accepted Answer

Journal entries are required for errors made on the company's books revealed by the bank reconciliation to correct the company's cash account. Errors made by the bank are the bank's responsibility to correct, and deposits in transit and outstanding checks are timing differences that do not require journal entries by the company.

After Preparing the Bank Reconciliation, Journal Entries Must Be Prepared