Classify each of the following reconciling items of the Tic and Tac Company as:

-Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963 ________
A)an addition to the bank balance
B)a deduction from the bank balance
C)an addition to the book balance
D)a deduction from the book balance
E)not a reconciling item

Question

Classify each of the following reconciling items of the Tic and Tac Company as:

-Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963 ________
A)an addition to the bank balance
B)a deduction from the bank balance
C)an addition to the book balance
D)a deduction from the book balance
E)not a reconciling item

Quizplus · Accepted Answer

The error made by the bookkeeper in recording the cheque as a lower amount than the actual means that the book balance is higher than it should be. Correcting this error involves deducting the difference from the book balance to align it with the actual amount spent.

Classify Each of the Following Reconciling Items of the Tic