A cheque of $75 deposited by a company was returned from the bank as a dishonoured cheque.How would this information be included on the bank reconciliation?
A)An addition on the bank side
B)An addition on the book side
C)A deduction on the book side
D)A deduction on the bank side

Question

Quizplus · Accepted Answer

Since the cheque was dishonoured, it means that the company's bank account was not credited with $75. Therefore, the entry would be a deduction on the book side of the bank reconciliation.

A Cheque of $75 Deposited by a Company Was Returned