Question

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

A.deposit in transit
B.check outstanding
C.bank service charge
D.note collected by the bank

Answer 1

D. Note collected by the bank.

Answer 2

C) bank service charge

Step-by-step 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.