If a check correctly written and paid by the bank for ¥4,910 is incorrectly recorded on the company's books for ¥4,190, the appropriate treatment on the bank reconciliation would be to

Question

Quizplus · Accepted Answer

Since the check was paid by the bank for ¥4,910 but recorded on the company's books for ¥4,190, there is an overstatement of ¥720 on the company's books. Therefore, to reconcile the difference between the bank balance and book balance, we need to subtract ¥720 from the book's balance.

If a Check Correctly Written and Paid by the Bank