A check was written by a business for $507 but was recorded in the 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 in recording the check amount in the company's books, not in the actual bank transaction. Therefore, to correct the error, an addition of the difference ($198) needs to be made on the book side to match the actual amount deducted by the bank.

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