Which of the following bank reconciliation items would be reflected in a journal entry?
a. error made by the bank
b. outstanding checks
c. bank service charges
d. deposit in transit

Option c) Bank service charges

Step-by-step explanation:

Bank service charges are the charges debited by the bank periodically to the account of the customer for some services.

a) Error made by the bank

is incorrect as this would be adjusted in the bank itself the company need not pass journal entry

b)  Outstanding checks

These will be automatically reconciled if debited or deposited. Hence the company need not pass journal entry

c) Bank service charges to be adjusted, the company has to pass journal entries otherwise bank balance would show a higher amount than cash book

Option c is right

d)  Deposit in transit These will be automatically reconciled if debited or deposited. Hence the company need not pass journal entry

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