Journal Entries for Bank Reconciliation
The items on the bank reconciliation that require a journal entry are the items noted as adjustments to books. These are the items that appear on the bank statement, but are not yet recorded in the company’s general ledger accounts.
Examples of Journal Entries for Bank Reconciliation
Examples of items requiring a journal entry as the result of the bank reconciliation include:
- Bank service charges which are often shown on the last day of the bank statement. Since the service charge is on the bank statement, but not yet on the company’s books, a journal entry is needed to credit Cash and to debit an expense such as Bank Charges or Miscellaneous Expense.
- Check printing charges
- Customer checks that were deposited but are now returned as NSF (not sufficient funds)
- Bank fees for returned checks
- Corrections made by the bank for the company’s errors in its deposits
- Collections made by the bank of the company’s notes receivable
- Interest earned on bank accounts
- Miscellaneous bank fees
- Loan payments
- Electronic deposits and withdrawals
