If a customer's cheque that has been deposited is returned with the bank statement marked "insufficient funds (NSF)," it would appear on the bank reconciliation as a deduction from the ending book balance.

Question

Quizplus · Accepted Answer

A returned cheque marked "insufficient funds" means the bank did not process the cheque, so the amount must be deducted from the book balance to reconcile with the bank statement.

If a Customer's Cheque That Has Been Deposited Is Returned