When bank charges are deducted from a customer's account, the balance on the bank statement would be
Question 1 Report
When bank charges are deducted from a customer's account, the balance on the bank statement would be
Answer Details
The balance on the bank statement would be less than the cash book balance if bank charges are deducted from the customer's account.
The cash book balance is the record of all the money that has come into and gone out of a customer's account as recorded by the customer. However, the bank statement is a record of all transactions in a customer's account as recorded by the bank.
When the bank deducts charges such as service fees or overdraft fees, these charges are not recorded in the customer's cash book, but they are recorded in the bank's records and will appear on the bank statement. This means that the balance on the bank statement will be lower than the balance recorded in the customer's cash book.
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