If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794,how should this error be treated on the bank reconciliation?
A)Subtract $45 from the bank's balance.
B)Add $45 to the bank's balance.
C)Subtract $45 from the book balance.
D)Add $45 to the book balance.
E)Subtract $45 from the bank's balance and add $45 to the book's balancE.$749 - $794 = $45 too much deducted from the company's cash account balance that must be added back to cash.

Question

Quizplus · Accepted Answer

Since the company's books recorded the check for $794 instead of $749, it means that they deducted $45 too much from their cash account. Therefore, we need to add $45 to the book balance to correct this error.

If a Check Correctly Written and Paid by the Bank