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| Bank Charges Journal Entry |
When a company pays bank charges, then it needs to maintain and record the transaction in its accounting records.
Journal Entry for Bank Charges
Bank Charges Expense Account Debit
Bank Account Credit
- The "Bank Charges Expense" account is debited because of the expense associated with bank charges.
- The "Bank Account" is credited because of reflects the decrease in the company's bank balance.
This journal entry reflects the bank charges as an expense, resulting in a decrease in the company's Asset i.e. bank balance.
