does bank charges transfer to profit n loss acc.?

Question

For eg.Since bank statement received on 4 oct 07, n close acc on 30sept 07.

should i transfer to p&l ?

Answer 1

You shouldn't close your a/cs until you've done your bank reconciliation. So if you had omitted the bank charges you'd have found out when doing the bank rec. After you've posted all your omitted entries into your books, then you can close that month's books. If you had done that, then the bank charges would automatically be taken up in Sept's books.

Answer 2

Yes, irrespective of when you receive the statement, such bank charges should be transferred to Profit & Loss Account.