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Bank Reconciliation — Interest Earned

Adjusting the general ledger for interest income shown on the monthly bank statement.

Account NameTypeDebit ($)Credit ($)
Cash in BankAsset (+)12.50-
Interest IncomeRevenue (+)-12.50

💡 Accountant's Note

Interest earned is typically discovered during the monthly bank reconciliation. This 'book-side' adjustment ensures the GL matches the actual bank balance.

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