If the bank records a deposit of $140 as $1400 , the error should be shown on a bank reconciliation as a:
A)subtraction from the book balance of $1540.
B)subtraction from the bank balance of $1540.
C)subtraction from the bank balance of $1260.
D)subtraction from the book balance of $1260.

Question

Quizplus · Accepted Answer

The bank recorded $140 as $1400, an overstatement of $1260. To reconcile, subtract $1260 from the bank balance.

If the Bank Records a Deposit of $140 as $1400