BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When there are no sufficient funds the bank would return the cheque presented for payment back to the account holder and mark on the cheque “NSF” which means that there are not sufficient funds in your account.

Detailed explanation-2: -Non-sufficient funds (NSF), or insufficient funds, is the status of a checking account that does not have enough money to cover all transactions. NSF also describes the fee charged when a check is presented but cannot be covered by the balance in the account.

Detailed explanation-3: -NSF stands for “not sufficient funds”. An NSF check is one that is not entertained by the bank of the company issuing the check, on the grounds that its bank account does not contain sufficient funds or the bank account has been closed.

Detailed explanation-4: -NSF (not sufficient funds) checks. When this happens, the bank returns the check to the depositor and deducts the check amount from the depositor’s account Therefore, NSF checks must be subtracted from the company’s book balance on the bank reconciliation.

Detailed explanation-5: -Generally, a bank may attempt to deposit the check two or three times when there are insufficient funds in your account. However, there are no laws that determine how many times a check may be resubmitted, and there is no guarantee that the check will be resubmitted at all.