If the bank records a deposit of $130 as $1,300,the error should be shown on a bank reconciliation as a:
A)subtraction from the book balance of $1,430.
B)subtraction from the bank balance of $1,430.
C)subtraction from the bank balance of $1,170.
D)subtraction from the book balance of $1,170.

Question

Quizplus · Accepted Answer

The error should be shown as a subtraction from the bank balance of $1,170 because the bank mistakenly recorded the deposit $1,170 more than what it actually was ($1,300 - $130 = $1,170). This adjustment is needed to reconcile the bank's balance with the company's records.

If the Bank Records a Deposit of $130 as $1,300,the