If a cheque correctly written and paid by the bank for $521 is incorrectly recorded on the company's books for $251, the appropriate treatment on the bank reconciliation would be to

Question

Quizplus · Accepted Answer

Since the cheque was recorded for $251 instead of $521, there is a discrepancy of $270. To correct this on the bank reconciliation, we need to deduct $270 from the balance per books to reflect the true balance.

If a Cheque Correctly Written and Paid by the Bank