A payment for $49 is incorrectly recorded in the accounting records as $94. The $45 error should be shown on the bank reconciliation as
A) added to the balance per bank statement.
B) deducted from the balance per bank statement.
C) added to the balance per books.
D) deducted from the balance per books.

Question

Quizplus · Accepted Answer

The error occurred in the accounting records (books), not in the bank statement. Since the payment was recorded as more than it actually was, the books are showing less cash than there actually is. Therefore, to correct this, $45 should be added back to the balance per books to reflect the actual amount.

A Payment for $49 Is Incorrectly Recorded in the Accounting