Which of the following items would require a journal entry following preparation of the bank reconciliation statement?
A) Error by the bank
B) Error by the company
C) Unpresented cheques at end of the month
D) Receipts not yet banked

Question

Quizplus · Accepted Answer

Errors by the company require a journal entry to correct the company's cash account, aligning it with the corrected bank statement balance after reconciliation. Errors by the bank are typically resolved by the bank itself and do not require a journal entry by the company. Unpresented cheques and receipts not yet banked are adjustments in the bank reconciliation process but do not require a journal entry as they are timing differences that resolve themselves when the cheques are presented or the receipts are banked.

Which of the Following Items Would Require a Journal Entry