A cheque issued to settle an account for $145 was recorded on the books as $1,450. On a bank reconciliation, this will appear as a(n):
A)addition to the book balance.
B)deduction from the book balance.
C)addition to the bank balance.
D)deduction from the bank balance.

Question

Quizplus · Accepted Answer

The cheque was recorded incorrectly on the books as $1,450 instead of $145, meaning the book balance is $1,305 less than it should be. Therefore, an addition to the book balance is needed to correct this error.

A Cheque Issued to Settle an Account for $145 Was