Question

1. What should be entered in the ending balance field of a bank account reconciliation?

   1. The closing or final balance from the bank statement

   2. The total of all service and interest charges from the bank statement

   3. The final balance for the bank account in the general ledger

   4. The total of all uncleared cheques and deposits from the general ledger

Answer 1

The correct answer for the question is Option A - The closing or final balance from the Bank statement. Within a Bank Reconciliation, it starts from the Cash balance per the books and makes adjustments for the items that form part of the Bank reconciliation to arrive at the ending balance per the Bank statement. Hence, this is the correct answer.

Option B is incorrect as the total of all service and interest charges from the bank statement are items that form part of the Bank reconciliation.

Option C is incorrect as the bank balance are compared with the bank statements and hence this is not valid.

Option D is incorrect as uncleard cheques and deposits are part of the bank reconciliations and hence is incorrect.

Please let me know if you have any questions via comments and all the best :) !