Accounting · Banking Operations
In the context of modern banking operations involving automated clearing house (ACH) transactions, a bank discovers that a batch of salary payments was processed twice due to a system glitch. To rectify this operational accounting error while maintaining systemic balance, what sequence of entries should the bank's accounting department initiate?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Charge the difference to the bank's miscellaneous expense account and treat it as an operational loss.
- 2Wait for the employees to voluntarily return the excess funds and then credit the client's account.
- 3Pass a set of reversal entries for the entire duplicate batch and then ensure the single correct batch is properly settled.✓
- 4Manually adjust the client's balance in the master file and ignore the employee accounts.
Correct answer
Pass a set of reversal entries for the entire duplicate batch and then ensure the single correct batch is properly settled.
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