If a check correctly written and paid by the bank for $427 is incorrectly recorded on the company's books for $472, the appropriate treatment on the bank reconciliation would be to
A) add $45 to the bank's balance.
B) add $45 to the book's balance.
C) deduct $45 from the bank's balance.
D) deduct $427 from the book's balance.

Question

Quizplus · Accepted Answer

The company recorded the check as $472 instead of $427, so the books are overstated by $45. To correct this, $45 should be added to the book's balance.

If a Check Correctly Written and Paid by the Bank