The bank statement reveals an EFT received from a customer that has not yet been recorded in the journal. How would this information be included on the bank reconciliation?
An addition on the book side
If an electronic funds transfer (EFT) received from a customer has not been recorded in the journal yet but has been identified on the bank statement during the bank reconciliation process, then it needs to be included on the bank reconciliation report.
To do so, it is necessary to make the following adjustments:
1. Add the amount of the EFT received to the deposits in transit section on the bank reconciliation. This is because the deposit has been made but has not yet been recorded in the journal, and it will therefore increase the balance of the bank account.
2. Credit the account receivable in the general ledger for the amount of the EFT received. This reflects the fact that the customer has paid the due amount, and it will increase the balance of the accounts receivable account.
3. Debit the corresponding revenue or income account in the general ledger for the amount of the EFT received. This reflects the fact that the amount of the EFT has been earned or received by the business, and it will increase the balance of the revenue or income account.
By making these adjustments, the bank reconciliation will be updated to reflect the EFT received from the customer that was not recorded in the journal. This will ensure that the bank balance and the accounting records are reconciled, and will help to identify any discrepancies or errors that need to be corrected.
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