A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a (n)
A) deduction from the balance per the company's records
B) addition to the balance per the bank statement
C) deduction from the balance per the bank statement
D) addition to the balance per the company's records

Question

Quizplus · Accepted Answer

The check was recorded for $695 instead of $965, meaning the company's records show $270 less than the actual payment. Therefore, $270 should be deducted from the company's records to correct the error.

A Check Drawn by a Company in Payment of a Voucher