Answer:
Option c) Bank service charges
Step-by-step explanation:
Bank service charges are the charges debited by the bank periodically to the account of the customer for some services.
a) Error made by the bank
is incorrect as this would be adjusted in the bank itself the company need not pass journal entry
b) Outstanding checks
These will be automatically reconciled if debited or deposited. Hence the company need not pass journal entry
c) Bank service charges to be adjusted, the company has to pass journal entries otherwise bank balance would show a higher amount than cash book
Option c is right
d) Deposit in transit These will be automatically reconciled if debited or deposited. Hence the company need not pass journal entry
