A check drawn by a company for $360 in payment of a liability was recorded in the journal as $630.This item would be included on the bank reconciliation as a(n)
A)addition to the balance per the company's records.
B)addition to the balance per the bank statement.
C)deduction from the balance per the bank statement.
D)deduction from the balance per the company's records.

Question

Quizplus · Accepted Answer

The error in recording the check amount means the company's records show a higher deduction than what actually occurred. To correct this, $270 should be added back to the company's records.

A Check Drawn by a Company for $360 in Payment