B. Subtraction from the balance per the books.
A bank service charge is a deduction that appears on the bank statement so it is already subtracted per the bank. In order to perform a bank reconciliation, the company or accountant must balance the bank and book by also subtracting, or deducting, the bank service charge on the company's books. This makes the two statements, for both the bank and book, equal and reconciled moving forward.
