The bank charged a service fee of $20.How would this information be included on the bank reconciliation?
A) A deduction on the bank side
B) An addition on the book side
C) A deduction on the book side
D) An addition on the bank side

Question

Quizplus · Accepted Answer

The service fee charged by the bank is a deduction from the book balance as it is recorded in the bank statement but not in the company's records. Therefore, it needs to be subtracted from the book balance on the book side of the reconciliation to bring it in line with the bank balance.

The Bank Charged a Service Fee of $20