A check was written by a business for $549, but was recorded erroneously in the cash ledger as $459. How would this error be included on the bank reconciliation?
A)an addition on the book side
B)a deduction on the bank side
C)a deduction on the book side
D)an addition on the bank side

Question

Quizplus · Accepted Answer

Since the check was recorded as $459 instead of $549, there is an overstatement of $90 in the cash balance on the book side, so this error should be deducted on the book side of the bank reconciliation to bring the balances into agreement.

A Check Was Written by a Business for $549, but Was