Bank Service Charges: debit or credit?
Bank Service Charges increases on the debit side and decreases on the credit side: its normal balance is a debit.
Expenses reduce equity through the costs of running the business. They increase with a debit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Bank Service Charges |
| Spain (PGC 2007) | 626 Servicios bancarios y similares |
| France (PCG 2025) | 627 Services bancaires et assimilés |
| Germany (generic accounts) | Kosten des Geldverkehrs |
Practice entries that use this account
- Bank charges on a wire transfer to a supplier
- Withdrawing cash from the bank, with a fee
- Customer check returned NSF
- Bank collects a note receivable for the company
- Bank fee and interest found in a bank reconciliation
- Customer pays two invoices by one bank transfer, less a bank fee
- Receiving a bank loan net of an arrangement fee