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 received from a customer would be recorded as a deduction from the balance per books because the company initially recorded the cheque as an increase in its cash balance, and upon receiving notification of the NSF cheque, it must reverse this entry.

An NSF Cheque Received from a Customer Should Appear in Which