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25 December, 00:29

During a bank reconciliation process, a. outstanding checks and deposits in transit are subtracted from the bank statement balance b. outstanding checks are subtracted and deposits in transit are added to the bank statement balance c. outstanding checks and deposits in transit are added to the bank statement balance d. outstanding checks are added and deposits in transit are subtracted from the bank statement balance

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  1. 25 December, 01:23
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    Answer:The answer is b

    Explanation:

    Bank reconciliation statement is a statement prepared to resolve the discrepancy between the bank statements balance and the cash book balance. in the preparation of the bank reconciliation statement, to ascertain the discrepancy we have to compare the debit side of the cash book with the credit side of the bank statement to check for differences in deposit, we will also compared the credit side of the cash book with the debit side of the bank statement to check for differences in withdrawals. Bank reconciliation statement is not an account because double entry principle is not observed in the preparation of the bank reconciliation statement.

    In the preparation of the bank reconciliation statement, when starting with the bank statement balance, will have to add the deposit in transit and less the outstading cheque to arrive at the cash book balance. On the other hand, when starting with the cash book balance add outstanding cheque and less deposits In transit to arrive at the bank statement balance
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