In preparing a bank reconciliation,the amount indicated by a debit memorandum for bank service charges is deducted from the balance per bank statement.

Question

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A debit memorandum for bank service charges is deducted from the balance per books, not the balance per bank statement, as it represents an expense recorded by the bank that the company needs to account for in its own records.

In Preparing a Bank Reconciliation,the Amount Indicated by a Debit