Question

After preparing a bank reconciliation, a check outstanding for the payment of advertising would be recorded with a:

Answer 1

Bank reconciliation statement is made to tally the bank balance as per cash book and pass book. The transactions that do not change either of the balances are not recorded in the bank reconciliation statement. So, when the bank reconciliation statement has been prepared and it is found that a check is outstanding on account of advertising expense then there is no need to record such an outstanding check as there is no change in the balance as per the cash book and as per the pass book.