In reconciling the bank balance, an unrecorded debit memorandum for printing cheques should be:
A)Deducted from the bank balance of cash.
B)Deducted from the book balance of cash.
C)Added to the bank balance of cash.
D)Noted as a memo.
E)Added to the book balance of cash.

Question

Quizplus · Accepted Answer

An unrecorded debit memorandum for printing cheques represents a bank charge that has not yet been recorded in the company's books, so it should be deducted from the book balance of cash.

In Reconciling the Bank Balance, an Unrecorded Debit Memorandum for Printing