Journal entries that arise from reconciling items on the book side of the bank reconciliation include either a debit to Cash or a credit to Cash.

Question

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When reconciling items on the book side of the bank reconciliation, any adjustments made to correct discrepancies usually involve recording a debit or credit to the Cash account in the company's books. For example, if a check that was outstanding clears the bank, the company needs to reduce the outstanding amount in their books by recording a debit to Cash. On the other hand, if the bank adds interest earnings to the account, the company needs to increase the balance by recording a credit to Cash. Therefore, both debits and credits to Cash can arise when reconciling items on the book side of the bank reconciliation.

Journal Entries That Arise from Reconciling Items on the Book