A check that was outstanding on last period's bank reconciliation was not included with the cancelled checks returned by the bank this period.As a result,in preparing this period's reconciliation,the amount of this check should be:
A)Added to the book balance of cash
B)Deducted from the book balance of cash
C)Added to the bank balance of cash
D)Deducted from the bank balance of cash
E)Ignored in preparing the period's bank reconciliation

Question

Quizplus · Accepted Answer

The outstanding check was not cleared by the bank, so it should still be deducted from the bank balance to reconcile the bank statement with the company's records.

A Check That Was Outstanding on Last Period's Bank Reconciliation