How much of the following items are for deduction in the cash balance per bank when doing bank reconciliation?Bank service charge 100,000Outstanding check 200,000NSF check 30,000Group of answer choices170,000200,000230,000300,000
Question
How much of the following items are for deduction in the cash balance per bank when doing bank reconciliation?Bank service charge 100,000Outstanding check 200,000NSF check 30,000Group of answer choices170,000200,000230,000300,000
Solution
When doing a bank reconciliation, the items that are deducted from the cash balance per bank are the bank service charge and the outstanding checks. The NSF (Non-Sufficient Funds) check is not a deduction from the bank balance, but rather it is added back to the book balance.
Here's the breakdown:
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Bank service charge: This is a fee charged by the bank for maintaining the account. This is a deduction from the bank balance. In this case, it's 100,000.
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Outstanding check: This is a check that has been written and recorded in the company's books but has not yet cleared the bank. This is also a deduction from the bank balance. In this case, it's 200,000.
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NSF check: This is a check that was returned by the bank because the account it was drawn on did not have sufficient funds to cover the amount of the check. This is not a deduction from the bank balance, but rather it is added back to the book balance. In this case, it's 30,000.
So, the total amount for deduction in the cash balance per bank when doing bank reconciliation is 100,000 (bank service charge) + 200,000 (outstanding check) = 300,000. Therefore, the correct answer is 300,000.
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