Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 47 - No. 31)
How are bank charges typically recorded in the cash book?
Debit cash, credit bank charges.
Debit bank charges, credit bank.
Debit bank, credit bank charges.
Credit cash, debit bank charges.
Explanation
Bank charges are an expense, and it is debited, and the bank balance is credited, since it reduces the bank balance.
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