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In: Accounting

In a bank​ reconciliation, interest revenue earned on a chequing account would be deducted from the...

In a bank​ reconciliation, interest revenue earned on a chequing account would be deducted from the book balance.

true or false

Solutions

Expert Solution

Solution:
Answer is "FALSE"
Working Notes:
Notes: In bank reconciliation we want to get true balance of both bank balance in Books & chequing bank statement and which should be equal at end of reconciliation.
In the given case , interest revenue earned in a chequing accounts means this entry is first reflected in statement of Chequing account after which it is posted to book balance . And interest revenue earned increases the balance of chequing accounts so for reconciliation it should added to Book balance . Then only reconciliation process can be done correctly as it will makes both Book & Chequing balance reconciled and equals.
Hence "In a bank​ reconciliation, interest revenue earned on a chequing account would be deducted from the book balance." is FALSE
Please feel free to ask if anything about above solution in comment section of the question.

ekkarill92 answered 1 year ago
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