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# CHAPTER 7 - BANK RECONCILIATION
# --------------------------------
# BANK SIDE (Adjustments)
# Bank balance
# + Deposits in transit
# - Outstanding checks
# = Adjusted bank balance
# --------------------------------
# BOOKS SIDE (Adjustments)
# Book balance
# + Bank interest
# + Collections by bank
# - Bank fees
# - NSF checks
# +/- Bank error correction
# = Adjusted book balance
# --------------------------------
# FINAL RULE
# Adjusted bank balance =
# Adjusted book balance
# --------------------------------
# WHAT GOES WHERE ?
# Deposits in transit -> BANK +
# Outstanding checks -> BANK -
# Interest -> BOOKS +
# Collections -> BOOKS +
# Bank fees -> BOOKS -
# NSF -> BOOKS -
# Bank error -> BOOKS +/- 
# --------------------------------
# JOURNAL ENTRIES (BOOKS ONLY)
# interest :
# Dr Cash ; Cr Interest Revenue
# bank fees :
# Dr Bank Expense ; Cr Cash
# NSF check :
# Dr Accounts Receivable ; Cr Cash
# bank collection :
# Dr Cash ; Cr AR
# bank error (too much deducted) :
# Dr Cash ; Cr Cash Over/Short
# --------------------------------
# EXAM REMINDERS
# 1) bank side = no journal entries
# 2) only books side affects cash
# 3) NSF = client did not pay
# 4) deposits transit + outstanding
# = timing differences (bank only)
# 5) final totals MUST match