A cheque was written by a business for $329, but was recorded erroneously in the cash ledger as $239. 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 is a $90 understatement of the cash balance per books. Therefore, the error must be added to the book balance to reconcile it to the bank balance.

A Cheque Was Written by a Business for $329, but Was