If a check correctly written and paid by the bank for $427 is incorrectly recorded on the company's books for $472, the appropriate treatment on the bank reconciliation would be to

Question

Quizplus · Accepted Answer

The error occurred in the company's books, not the bank's records. Since the company recorded the check as $472 instead of the correct amount of $427, the books were overstated by $45. To correct this, $45 should be added to the book's balance to align it with the bank's accurate record.

If a Check Correctly Written and Paid by the Bank