A debit memorandum discovered during the reconciliation process should be:
A) added to the book balance of cash
B) added to the bank statement balance of cash
C) deducted from the book balance of cash
D) deducted from the bank statement balance of cash

Question

Quizplus · Accepted Answer

A debit memorandum is an adjustment made by the bank that decreases the account balance. Therefore, it should be deducted from the book balance of cash to reconcile it with the bank statement.

A Debit Memorandum Discovered During the Reconciliation Process Should Be