If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794,how should this error be treated on the bank reconciliation?
A)Subtract $45 from the bank's balance.
B)Add $45 to the bank's balance.
C)Subtract $45 from the book balance.
D)Add $45 to the book balance.
E)Subtract $45 from the bank's balance and add $45 to the book's balance.

Question

Quizplus · Accepted Answer

The error is in the company's books, where the amount was overstated by $45. To correct this, $45 should be added to the book balance to match the actual amount paid by the bank.

If a Check Correctly Written and Paid by the Bank