Question

Due to bank statement delay, we are not able to post the
bank charges on the bank statement on regular basis. So we
should classify the open item as

1) Potential P&L impact
2) Timing variance
3) All of these
4) Incorrect balance
​

Answer 1

Answer:

The correct option is 4 ) incorrect balance

Explanation:

As due to bank statement delay , bank was unable to debit the bank charges it means the bank charges amount will be debited as it will go for bank reconciliation. so till then it's showing an access of  amount which will be debited afterwards . as of current situation it's showing us a incorrect balance.

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