Accounting entries of reconciliation of bank

Question

Accepted Answer

Reconciliation of bank involves comparing the bank statement with the company's records to ensure accuracy.

Reconciliation is done to identify any discrepancies between the bank statement and the company's records.
The process involves matching the transactions recorded in the company's books with those in the bank statement.
Any differences are investigated and necessary adjustments are made.
Common accounting entries in bank reconciliation include recording outstanding checks, deposits in transit, bank fees, and interest.
For example, if a check issued by the company is not yet cleared by the bank, it will be recorded as an outstanding check.
Similarly, if a deposit made by the company is not yet reflected in the bank statement, it will be considered as a deposit in transit.
Bank fees and interest earned or paid are also recorded during the reconciliation process.

Accepted Answer

Bank fees or service charges for maintaining the account, fees for returned checks, processing wire transfers, check printing, etc.ank interest earned.

Accepted Answer

Bank fees or service charges for maintaining the account, fees for returned checks, processing wire transfers, check printing, etc.and Bank interest earned.
Loan payments.
Electronic charges or remittances from suppliers and others.

Accounting entries of reconciliation of bank

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