Question

Which of the following bank reconciliation items should not be added to or subtracted from the...

Which of the following bank reconciliation items should not be added to or subtracted from the bank statement balance to determine the reconciled cash balance? Select one: A. Outstanding checks B. Deposits in the mail but not yet received by the bank C. Bank service charges D. None of the above

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Answer #1

Deposit in the mail but not yet received by the Bank is added to the Bank statement Balance.

Outstanding checks are subtracted from the Bank statement balance.

Bank service charges are not added or subtracted from the Bank Statement Balance while preparing Bank reconciliation.

Correct option is (C)

Bank service charges have already been deducted in the bank statement.

Bank service charges are subtracted from the book balance since due to Bank service charges, cash balance reduces

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