![]() Some financial transactions require payments to a bank for serving its clients, and these are debited in the depositor’s account, referred to as a debit memo or bank adjustment.Ī debit memo notifies a client of a deduction made to their account for a bank fee, bank error, bank charge, and erroneous credits.įor example, bank fees may include check printings, fund transfer fees, billings, opening account fees, and deposit fees.Ī disbursement might be recorded in a book with a different amount because of an oversight and also because of several transactions processed within a month. Without preparation of bank reconciliation, this transaction may not be identified because of its number of occurrences within a month or it might not be actually allowed by management.Īn unauthorized transaction made online should be scrutinized for the possible malicious acts of an employee, supervisor, or officer that may cause losses to a company.Ī journal entry is then prepared to set up a receivable from the aforesaid employee to establish obligations because of non-adherence to company rules and regulations.
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