In preparing a bank reconciliation,a service charge shown on the bank statement should be:
A)Added to the balance per the bank statement.
B)Deducted from the balance per the bank statement.
C)Added to the balance per the depositor's records.
D)Deducted from the balance per the depositor's records.

Question

Quizplus · Accepted Answer

Service charges shown on the bank statement are expenses that the bank has charged the account but are not yet recorded by the depositor. Therefore, they should be deducted from the balance per the depositor's records to reflect the true amount of funds available.

In Preparing a Bank Reconciliation,a Service Charge Shown on the Bank