Final answer:
An outstanding EFT should first be matched for the correct amount between bank records and your books. If it has cleared, adjust your books accordingly or confirm the transaction if already accounted for. Ensure the bank and book balances match after adjustments in the bank reconciliation process.
Step-by-step explanation:
When an outstanding Electronic Funds Transfer (EFT) from a previous bank reconciliation appears on the current bank statement, it should be addressed during the bank reconciliation process. First, verify that the EFT amount matches between your books and the bank statement. If the amounts match, it simply means that the transaction has now cleared the bank and should no longer be considered outstanding. You will then adjust your books to reflect the transaction as cleared. Conversely, if the transaction had already been accounted for in your books as a reduction in your bank balance, there is no further adjustment needed on the bank reconciliation because it's confirmation of an anticipated event.
If the EFT had not been previously recorded in your books but was instead simply noted as outstanding in the previous bank reconciliation, the amount should be deducted from the bank's balance per books (or added if it was an incoming transfer) during the current reconciliation. Ultimately, the goal is to ensure that the adjusted bank balance on your books matches the adjusted balance on the bank statement after all outstanding checks and deposits in transit have been accounted for and any errors corrected.