Question

Gina is conducting a bank reconciliation. She finds that the reason why the

accounts do not balance is because of a service fee. This amount should be
OA. added to the bank balance
B. added to the book balance
OC. subtracted from the bank balance
OD. subtracted from the book balance

Answer 1

D. Subtracted from the book balance

Hope this helps :)

Answer 2

C. subtracted from the bank balance

Step-by-step explanation:

A service fee is an amount charged by banks for services rendered. It is an income to the bank but an expense to the business. The banks deduct service fees automatically from the customer's accounts. The amounts and the date that a service fee has been charged reflects as a deduction on the customer's bank statement.

In reconciliations, the service fee should be deducted from the bank's balance. It is money that belongs to the bank and should reduce the customer's bank balance.