what is the proper treatment on the bank reconciliation of a debit memorandum issued by the bank? addition…

what is the proper treatment on the bank reconciliation of a debit memorandum issued by the bank? addition per book balance of cash deduction per book balance of cash addition per bank statement balance deduction per bank statement balance none of the above

what is the proper treatment on the bank reconciliation of a debit memorandum issued by the bank? addition per book balance of cash deduction per book balance of cash addition per bank statement balance deduction per bank statement balance none of the above

Answer

Brief Explanations:

A debit memorandum from the bank indicates a decrease in the bank - account balance that the company has not yet recorded in its books. So, it should be a deduction from the book balance of cash. For example, bank service charges are often communicated via debit memorandums and reduce the company's cash balance as per the books.

Answer:

B. Deduction per book balance of cash