If a bookkeeper mistakenly records a disbursement as $36 instead of the correct amount of $63, the error should be shown on the bank reconciliation as a:
A) $27 addition to the books.
B) $27 deduction from the books.
C) $36 addition to the books.
D) $36 deduction from the books.

Question

Quizplus · Accepted Answer

Since the actual disbursement was $63 and the bookkeeper mistakenly recorded it as $36, there is a difference of $27. This difference should be deducted from the books to correct the error, hence the correct option is B, which represents a $27 deduction from the books.

If a Bookkeeper Mistakenly Records a Disbursement as $36 Instead