A check drawn by a depositor for $810 in payment of a liability was recorded by the depositor as $180.The $630 difference would be included on the bank reconciliation as a(n):
A) addition to the cash balance per books.
B) addition to the cash balance per bank.
C) deduction from the cash balance per bank.
D) deduction from the cash balance per books.

Question

Quizplus · Accepted Answer

The depositor recorded the check for less than the actual amount, resulting in a lower cash balance per books than what is actually in the account. Therefore, the $630 difference needs to be deducted from the cash balance per books on the bank reconciliation.

A Check Drawn by a Depositor for $810 in Payment