What happens to interest revenue while preparing a bank reconciliation?

Sorry for late answer I was busy.All specialist I think give complete answer already so it general entry is:

 Dr. Bank

  To Interest revenue

Interest income will be treated as other income section by passing a journal entry

Dr. Bank                  xxxx

To Interest Revenue     xxxx

This entry will equalise the balance of bank statement and bank ledger provided the other transactions are in order.

The ending balance on a bank statement almost never agrees with the balance in a company's corresponding general ledger account. After receiving the bank statement, therefore, the company prepares a bank reconciliation, which identifies each difference between the company's records and the bank's records.

Banks often pay interest on checking account balances. Interest income reported on the bank statement has usually not been accrued by the company and, therefore, must be added to the company's book balance on the bank reconciliation.

Agrees with Mr Shaikh Mohamed

OFCOURSE IT WILL BE ADDED  AS INCOM

While preparing bank reconciliation, the bank ledger balance is showing lesser than the bank statement or pass book balance at the end of the month, since the interest earned or revenue on deposits not recorded by the company. For mutualizsing and equalizing the same, we have to pass the adjustment entries thru journal by debiting the bank account and crediting the interest earned account.

The Interest revenue is deducted from income from operating activity and added in cash received from investing activity (cash Inflow).

Interest earned on various saving accounts may be credited directly into the accounts by the bank at the end of a month. The account holding company records the interest receipt after it receives intimation from the bank through bank statement. Therefore, until the interest received is recorded in the cash book, the balance as per bank statement will be higher than the cash book balance. The difference needs to be eliminated by adjusting the cash book of the company before the preparation a bank reconciliation.

Bank                 xxxxxx

Inetrest Income                xxxxxxxxx

The revenue is "Recognised" and qualified to be accounted for as income.  All other details are clearly explaine.d 

hi,