Anna erroneously records a check drawn for $385 as $835.This error is adjusted on the bank reconciliation as a(n):
A) $450 addition to the cash balance per books.
B) $385 addition to the cash balance per bank.
C) $835 deduction from the cash balance per bank.
D) $1,220 deduction from the cash balance per books.

Question

Quizplus · Accepted Answer

The error made by Anna resulted in the books showing $450 more ($835 - $385) than what was actually drawn. To correct this, $450 needs to be added back to the cash balance per books to align with the actual amount spent.

Anna Erroneously Records a Check Drawn for $385 as $835