A check was written by a business for $507, but was recorded in the cash payments journal as $705. How would this error be included on the bank reconciliation?
A)a deduction on the bank side
B)an addition on the book side
C)an addition on the bank side
D)a deduction on the book side

Question

Quizplus · Accepted Answer

The error was made in the company's books, recording the check for more than its actual amount. To correct this, the difference ($705 - $507 = $198) should be added back to the book side during the bank reconciliation.

A Check Was Written by a Business for $507, but Was