Which of the following can be done as part of the bank reconciliation process? Select all...

Which of the following can be done as part of the bank reconciliation process?
Select all that apply.

Select one or more:

A. You can open and edit transactions listed on the reconciliation screen.

B. Service charges and interest income not previously recorded can be entered.

C. Transactions dated subsequent to the bank statement ending date can be hidden from view.

D. New banking transactions (checks and deposits for example) can be entered.

Solutions

Expert Solution

Bank reconciliation is done at a certain date between your balance as per cash book & bank balance as per bank statement.

There are numerous transaction due to which difference between balance as per book & balance as per bank statement occurs which are as follows -

(1.) bank charges which are imposed by bank.

(2.) Cheques which are yet to present in bank.

(3.) Any amount which are credited by bank but not debited by us.

(4.) Any other human error

Remember whatever we do we will do in our books.

now come at question, It is not a part of reco.as we can not edit any transaction which had been done in our books, we can make only a journal entry to reverse the effect of that transaction. so the option (A) is not correct.

Option (B) Yes It is a part of reconciliation statement, at the end of month/week/or any period when reconciliation needs to be done, there are such charges which are imposed by the bank like NEFT/RTGS/DD charges & interest income, which are yet to be entered in our books.

option (C) yes it can be hidden from view because reconciliation is done for a certain date like month end (as on 30/31st). If in bank statement the transaction is coming beyond the required date we can hide it.

The only thing which we keep in mind that at a required/reco. date balance as per book & balance as per bank should come equal.

No It is not a part of reco. as New banking transaction can not be entered during bank reconciliation process soOption (D) should not be correct.

so as per my view option B & C should be correct.

Please check with your answer and let me know.

ekkarill92 answered 5 months ago

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