What term refers to items the bank deducts from the bank account balance?

The term that refers to items the bank deducts from the bank account balance is a debit memorandum. A debit memorandum is used by banks to record transactions that reduce the balance in a customer’s account, such as fees, charges, or returned checks.

When the bank processes a transaction that negatively affects the account balance, they document this with a debit memorandum, which serves as an official record of the deduction.

In contrast, a credit memorandum would indicate a deposit or an increase in the account balance, while bank reconciliation is the process of comparing the bank statement to the financial records to ensure accuracy. A deposit slip is a document used to deposit funds into the bank, not to indicate deductions from the account.