Which of the following items is typically found on the book side of a bank reconciliation?

• A. Bank service charges
• B. Deposits in transit
• C. Outstanding checks
• D. Errors made by the bank

Answer: (A)

Verified step by step guidance

1. Understand the concept of bank reconciliation: Bank reconciliation is the process of comparing the bank statement with the company's accounting records to identify discrepancies and ensure accuracy.
2. Identify the two sides of a bank reconciliation: The 'bank side' includes items that affect the bank statement, such as deposits in transit and outstanding checks. The 'book side' includes items that affect the company's accounting records, such as bank service charges and errors made by the company.
3. Analyze each option provided: Deposits in transit and outstanding checks are adjustments made to the bank side because they represent timing differences between the bank and the company's records. Bank service charges and errors made by the company are adjustments made to the book side because they directly affect the company's accounting records.
4. Focus on the book side: Items typically found on the book side include bank service charges, errors made by the company, and any other adjustments that need to be recorded in the company's books to reconcile with the bank statement.
5. Conclude that the correct answer is 'Bank service charges,' as this is an item that affects the company's accounting records and is typically found on the book side of a bank reconciliation.