A cheque was written by a business for $205,but was recorded in the cash payments journal as $502.How would this error be included on the bank reconciliation?
A)A deduction on the book side
B)An addition on the bank side
C)A deduction on the bank side
D)An addition on the book side

Question

Quizplus · Accepted Answer

The error resulted in an overstatement of cash payments by $297 ($502 - $205). To correct this, $297 should be added back to the book side of the bank reconciliation.

A Cheque Was Written by a Business for $205,but Was