Q17RQ
Question
Why is it necessary to record journal entries after the bank reconciliation has been prepared? Which side of the bank reconciliation requires journal entries?
Step-by-Step Solution
Verified Answer
To record the transactions into the accounts.
1Step-by-Step Solution Step 1: Definition of the bank reconciliation statement
Bank reconciliation statement of the activities of the bank account and company’s book.
2Step 2: Necessary to record journal entries
The journal entries of the bank reconciliation are required to get the transaction into accounts. Before the journal entries, transactions were not transferred in accounts. The book side of the bank reconciliation requires journal entries.
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