How would bank service charges be dealt with in a bank reconciliation?
A) added to company's book balance
B) deducted from company's book balance
C) added to bank statement balance
D) deducted from bank statement balance

Question

Quizplus · Accepted Answer

Bank service charges are fees charged by the bank to the account holder for various banking services. These charges are deducted from the company's bank balance, which reduces the balance in the account. Therefore, they should be deducted from the company's book balance to reconcile it with the bank statement balance.

How Would Bank Service Charges Be Dealt with in a Bank