If a cheque correctly written and paid by the bank for $528 is incorrectly recorded on the company's books for $582, the appropriate treatment on the bank reconciliation would be to
A) add $54 to the bank's balance.
B) add $54 to the book's balance.
C) deduct $54 from the bank's balance.
D) deduct $528 from the book's balance.

Question

Quizplus · Accepted Answer

The company recorded the cheque as $582 instead of the correct amount of $528, resulting in an overstatement of $54 in the company's books. To correct this, $54 should be added to the book's balance.

If a Cheque Correctly Written and Paid by the Bank