After a bank reconciliation statement is completed, a firm may have to make an entry in its accounting records for:

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NSF (Non-Sufficient Funds) checks are checks that have been returned by the bank because the issuer's account does not have enough funds to cover the check. When a firm receives an NSF check, it must reverse the original entry that credited its bank account, thus requiring an adjustment in its accounting records. Deposits in transit, the bank statement balance, and outstanding checks are reconciling items that do not require an entry in the firm's accounting records after a bank reconciliation is completed, as they are adjustments made to reconcile the book balance with the bank statement balance.

After a Bank Reconciliation Statement Is Completed, a Firm May