A credit memorandum appeared on Central Company's bank statement.How will Central treat this amount on its bank reconciliation?
A) Add it to the bank balance
B) Add it to the book balance
C) Deduct from the bank balance
D) Deduct from the book balance

Question

Quizplus · Accepted Answer

A credit memorandum indicates an increase in the bank account balance, so it should be added to the book balance during reconciliation.

A Credit Memorandum Appeared on Central Company's Bank Statement