If a check correctly written and paid by the bank for $724 is incorrectly recorded on the company's books for $742 the appropriate treatment on the bank reconciliation would be to
A) add $18 to the bank's balance.
B) add $18 to the book's balance.
C) deduct $724 from the bank's balance.
D) deduct $724 from the book's balance.

Question

Quizplus · Accepted Answer

The error is in the company's books, where the amount was recorded as $742 instead of the correct $724. The difference is $18, which was overstated in the books. Therefore, to reconcile, $18 should be added back to the book's balance to correct the overstatement.

If a Check Correctly Written and Paid by the Bank