Question

Which item should be added to the company's book balance during the bank reconciliation ?

Answer 1

Answer:

C) bank service charge

Explanation:

When you are carrying out a bank reconciliation you mus adjust both the bank balance and your book balance. The following items are generally included as adjustments on the book balance:

1. Interest earned; i.e. any interest paid by the bank.
2. Service charges, e.g. bank fees, check printing fees, penalty fees, etc.
3. Adjustments to deposits: a deposit might have been recorded incorrectly.
4. Adjustments to checks: a check might have been recorded incorrectly.

Answer 2

D. Note collected by the bank.