Journal entries must be made to record the reconciling items on the bank side of the reconciliation.

Question

Quizplus · Accepted Answer

Reconciling items on the bank side of a bank reconciliation (such as outstanding checks or deposits in transit) do not require journal entries in the company's books, as they represent timing differences between the bank's records and the company's records. Journal entries are made for adjustments on the company's side (e.g., bank fees, interest income) that have not yet been recorded in the company's books.

Journal Entries Must Be Made to Record the Reconciling Items