On a bank reconciliation, an unrecorded debit memorandum for printing checks is:
A) Noted as a memorandum only.
B) Added to the book balance of cash.
C) Deducted from the book balance of cash.
D) Added to the bank balance of cash.
E) Deducted from the bank balance of cash.

Question

Quizplus · Accepted Answer

An unrecorded debit memorandum for printing checks represents a deduction from the company's book balance of cash because the company's bank account has been debited for the printing expense, but the company has not recorded it in its books. Therefore, the company's book balance needs to be decreased to reflect this transaction.

On a Bank Reconciliation, an Unrecorded Debit Memorandum for Printing