A check was written by a business for $549 but was recorded erroneously in the Cash account 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 written for more money than was recorded in the Cash account, this means that the balance in the Cash account is higher than it should be. Therefore, the error should be reflected as a deduction on the book side of the bank reconciliation.

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