If a check correctly written and paid by the bank for $854 is incorrectly recorded on the company's books for $845 the appropriate treatment on the bank reconciliation would be to
A) deduct $9 from the book's balance.
B) add $9 to the book's balance.
C) deduct $9 from the bank's balance.
D) deduct $854 from the book's balance.

Question

Quizplus · Accepted Answer

The check was recorded for $845 on the company's books, but it should have been recorded for $854. This means that the company's books are overstated by $9. To correct for this, we should deduct $9 from the company's book balance on the bank reconciliation. Therefore, the appropriate treatment is to deduct $9 from the book's balance.

If a Check Correctly Written and Paid by the Bank