Examples on reconciliation items that need to show on the BOOKS side, and associated journal entries are: The EFT will be added to the book side and will be journalised as Debit to A/R and Credit to Cash. Example on items to be ADDED to the book side are: First: a cash transfer received in the bank from a customer that we still didn't know about so it wasn't recorded in the books yet. Second: Received cash in the bank for interest that we also didn't know about so it wasn't recorded in the books yet. NSF means a customer check that got rejected by our bank, so we have to subtract it from the book side and we record a journal entry: Debit NSF and Credit Cash Purchases with a Debit card that we forgot to record in our books. That can be either added on subtracted on the books side only