Misconception · MIS:bank-charge-adjusts-the-bank-side

Mistaken idea “A bank charge adjusts the bank side”

Mistaken reasoning: This mistake changes a bank balance that already includes the fee instead of updating the entity's ledger.

Updated Sep 11, 2026 Review due Dec 11, 2026

Why this is mistaken

The bank statement already contains the charge. Subtract it from the book side, debit the supported expense, and credit Cash. The event's origin does not decide which reconciliation side is waiting.

Where to watch

When this mistake may appear

  • The bank created the charge.
Check your work

Your work may contain this mistake if:

  • Subtracts the fee from the bank side and records no expense.