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) Add $45 to the bank's balance.
B) Add $45 to the book balance.
C) Subtract $45 from the bank's balance.
D) Subtract $45 from the bank's balance and add $45 to the book's balance.
E) Subtract $45 from the book balance.

Question

Quizplus · Accepted Answer

The error in the company's books means the check was recorded for $45 more than it should have been. To correct this, $45 should be added to the book balance.

If a Check Correctly Written and Paid by the Bank