Question

How would you reconcile for a bank service fee listed on the statement?

Erase it from the bank statement
Add it to the closing balance on the statement
Enter it into your external register in the same manner as a withdrawal
Keep a seperate diary of service fees

Answer 1

To reconcile a bank service fee listed on the statement, the correct approach would be to **enter it into your external register in the same manner as a withdrawal**.

Here's a brief explanation of why this is the appropriate action:

1. **Recording the Fee**: By entering the bank service fee into your external register, you accurately reflect the amount of money that has actually been withdrawn from your account, ensuring your records align with the bank's records.

2. **Maintaining Accurate Records**: This practice helps you keep an up-to-date and accurate account balance in your financial records.

3. **Reconciliation**: This action will facilitate the reconciliation process by confirming that your records match the bank's statement, making it easier to identify and resolve any discrepancies.

In summary, recording the service fee as a withdrawal in your external register is the best practice for reconciliation.