An NSF cheque received from a customer should appear in which section of the bank reconciliation?
A) addition to the balance per books
B) deduction from the balance per books
C) addition to the balance per bank
D) deduction from the balance per bank

Question

Quizplus · Accepted Answer

An NSF (Non-Sufficient Funds) cheque means the customer's cheque was not honored by the bank due to insufficient funds. This amount should be deducted from the balance per books because it was initially recorded as a deposit but now needs to be reversed.

An NSF Cheque Received from a Customer Should Appear in Which