If a bookkeeper mistakenly recorded a payment as $83 instead of the correct amount of $38, the error would be shown on the bank reconciliation as a:
A)$45 addition to the book balance.
B)$45 deduction from the book balance.
C)$45 deduction from the bank balance.
D)$45 addition to the bank balance.

Question

Quizplus · Accepted Answer

The error would be shown as a $45 addition to the book balance because the bookkeeper overrecorded the payment by $45 ($83 - $38 = $45), so to reconcile, the book balance needs to be increased by $45 to match the correct transaction amount.

If a Bookkeeper Mistakenly Recorded a Payment as $83 Instead