What kind of transactions are recored in the bank r/d in the debtors reconciliation and give examples ?

Bank reconciliation is the process of comparing the bank's records of transactions with an individual or company's own records to ensure they match. Debtors reconciliation specifically focuses on reconciling the accounts receivable records with the bank's records.

Transactions recorded in the debtors reconciliation include:

1. Payments received from debtors: When a debtor makes a payment towards their outstanding balance, this transaction needs to be recorded in the debtors reconciliation to ensure it matches the bank's records.

2. Adjustments for returned or bounced checks: If a check from a debtor is returned or bounces, adjustments need to be made in the debtors reconciliation to reflect this discrepancy.

3. Credit notes issued to debtors: If a credit note is issued to a debtor for any reason, such as a refund or discount, this transaction needs to be recorded in the debtors reconciliation.

4. Interest charges on overdue payments: If interest charges are applied to overdue payments from debtors, these transactions need to be recorded in the debtors reconciliation.

Examples of transactions recorded in the debtors reconciliation include:

- A debtor makes a payment of $500 towards their outstanding balance.
- A check from a debtor is returned due to insufficient funds, resulting in a $100 adjustment in the debtors reconciliation.
- A credit note of $50 is issued to a debtor for a returned product.
- Interest charges of $20 are applied to an overdue payment from a debtor.