Question

Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $43, Outstanding checks $300, Interest $13, Deposit in transit $880

Answer 1

Answer:

Outstanding checks $300

Explanation:

The amount that should be amount deducted from the bank balance side of a checking account reconciliation should be the OUTSTANDING CHECKS of the amount of $300 reason been that a company or an organisation can have outstanding checks in a situation where the company has issued a check in which such check has already be recorded in the company ledger account but the check has not yet clear the bank account which may inturn makes the balance in the bank account to be greater than the amounts that the company has as cash.