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Financial & Managerial Accounting
Found in: Page 305
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

For each of the following items a through g, indicate whether its amount (1) affects the bank or book side of a bank reconciliation, (2) represents an addition or a subtraction in a bank reconciliation, and (3) requires an adjusting journal entry.

Bank or Book Side Add or Subtract Adj. Entry or Not

c. Minimum balance charge. . . . . . . . . . . . . . .

Answer

  1. Book side will be affected

  2. Represents subtraction is a bank reconciliation statement

  3. Adjustment is required in a journal entry

See the step by step solution

Step by Step Solution

Step-by-Step SolutionStep 1: Introduction to topic

Error and Omission- Sometimes, disparities in the cash book and bank statement might emerge from errors submitted by the bank or the individual responsible for reviewing the cash book. These errors need to be redressed.

Step 2: Effect of transaction

Bank or Book

Add or subtract

Adj. Entry or Not

Minimum balance charge

Book

Subtract

Adjustment required

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