In bank reconciliation, what adjustment is required for direct bank charges deducted by the bank but not yet entered in the cash book?

Explanation

• Bank service charges reduce actual cash balances held at the bank but are not recorded in the business cash book until bank statements arrive.
• To reconcile, direct bank charges must be deducted from the cash book balance.
• Correcting entries are then posted to ledger accounts to reflect bank service charges expense.