In preparing a bank reconciliation, the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records.

Question

Quizplus · Accepted Answer

When a check is recorded for a larger amount than its actual value, the company's records show a lower balance than they should. To correct this, the error amount is added back to the company's records.

In Preparing a Bank Reconciliation, the Amount of an Error