In preparing a bank reconciliation statement for a business with a substantial bank balance, the appropriate treatment for monthly bank service charges, $30, appearing on the bank statement is to:
A) add it to the balance as per bank statement.
B) deduct it from the balance as per bank statement.
C) add it to the balance per company records.
D) deduct it from the balance per company records.

Question

Quizplus · Accepted Answer

Monthly bank service charges are expenses recorded in the company's records but may not have been reflected in the bank statement balance. Therefore, it needs to be deducted from the balance per company records to reconcile the difference between the bank statement balance and the company's balance.

In Preparing a Bank Reconciliation Statement for a Business with a Substantial