If a cheque correctly written and paid by the bank for $521 is incorrectly recorded on the company's books for $251, the appropriate treatment on the bank reconciliation would be to
A)add $270 to the balance per bank.
B)add $270 to the balance per books.
C)deduct $270 from the balance per books.
D)deduct $270 from the balance per bank.

Question

Quizplus · Accepted Answer

Since the cheque was correctly paid by the bank for $521, but incorrectly recorded on the company's books for $251, there is a discrepancy of $270 ($521 - $251). Therefore, the appropriate treatment on the bank reconciliation would be to deduct $270 from the balance per books to adjust it to the correct balance.

If a Cheque Correctly Written and Paid by the Bank