Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $55, Outstanding checks $330, Interest $19, Deposit in transit $940. a. $55 b. $330 c. $940 d. $385 e. 349

Question

Business

Claire Hunt

8 October, 12:56

Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliation? Service charge $55, Outstanding checks $330, Interest $19, Deposit in transit $940. a. $55 b. $330 c. $940 d. $385 e. 349

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Answers (1)

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Chelsea Cohen · Answer 1

The correct answer is B

Explanation:

The outstanding check is the check which has been issued by the issuing body and recorded in the ledger book as debit, but not yet reflected as a debit from the bank side, which means that payment is not cleared by bank.

So, proper account reconciliation is needed among the bank balance side of the checking account and the customer side of the checking account. Therefore, the aggregate amount need to subtracted from the bank balance, the amount of $330 will be deducted.