Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item.
-Bank charged a cheque against the company, which should have been charged to another company.
A) Add to cash balance per books
B) Deduct from cash balance per books
C)Add to cash balance per bank
D) Deduct from cash balance per bank
E) Does not affect the bank reconciliation

Question

Quizplus · Accepted Answer

The bank charged a cheque to the company's account by mistake, so the amount should be added back to the cash balance per bank to correct the error.

Using the Code Letters Below, Indicate How Each of the Items