What does debit memo mean on a bank statement?
A debit memo on a bank statement refers to a deduction from the bank account’s balance. In other words, a debit memo has the same effect as a check written on the bank account.
A bank debit memo could be a charge for interest owed to the bank, a loan payment, a fee owed for the printing of checks, a fee for the handling of a check that was returned because of insufficient funds, a transfer of funds from the bank account to another account at the bank, and so on.
The charge, decrease, or reduction is likely called a debit memo because the checking account balance is a liability on the bank’s books. This is the case because the bank has your money as one of its assets and it has your account balance as one of its liabilities. When the bank decreases your account balance, it is reducing its liability. Liabilities are reduced with a debit entry. That also explains why the bank credits your account when your account balance is increased.
Learn more about Bank Reconciliation.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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hello dear sir,
dear sir could you please reply me that what does Finance means ?
thank you
Finance is simply the management of finance
when the () is around a number does that mean you owe that amount or does it mean it is owed to you.
Is bank reconciliation necessary for every company.
Is bank reconciliation necessary for every company. if yes then why
dear sir,
how the Bank Reconciliation be used ??
an amount inside () is a negative amount
what is the easy way to learn bank reconcilition statement
in a layman’s view rec is just verifying whether both the parties have recorded the same transactions with the same amount or not. Go one by one transactions and what ever is there collect back up for and record in your ledger. Do it every week if possible which keeps your accounts up to date at the end of the month.
which are the different between the credit and debit balance in cash budget
what is the easy way to learn bank reconcilition ?
Read the free Explanation of Bank Reconciliation on AccountingCoach.com.
please tell me closing stock entered 2times why? 1. trading and profit and loss a/c and Balance sheet?
why closing stock entered trading A/c and balance sheet ? 2times why?
what is meaning of bank reconciliation
See AccountingCoach.com’s Explanation of Bank Reconciliation at:http://www.accountingcoach.com/online-accounting-course/13Xpg01.html
My ACH transactions are in memo and are deducted from my balance, but will not post to my account until Midnight. If I have 30.00 and 2 ACH transactions–one for 35.00 one for 45.00 would I be charged an overdraft fee even if they are in memo and not posted yet?
hullo, i reconciled the books of the 1st quarter and where perfectly accurate. however, the difference by which both the bank and cash balances were adjusted, is the same figure by which my 2nd quarterly accounts failed to balance. what causes such an instance???