In reconciling the July bank statement, the vice president discovered that the bookkeeper had recorded a check written for $353 as $533 in the cash disbursements journal. For the bank reconciliation, the $180 error should be:
A) Added to balance per bank statement
B) Added to balance per general ledger
C) Deducted from balance per bank statement
D) Deducted from balance per general ledger
E) None of the above

Question

Quizplus · Accepted Answer

The error occurred in the company's books, not the bank statement. Therefore, to correct the overstatement in the cash disbursements journal, $180 should be added back to the balance per general ledger.

In Reconciling the July Bank Statement, the Vice President Discovered