If the company's accountant mistakenly recorded a $58 deposit as $85,the error would be shown on the bank reconciliation as a(n):

Question

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The bank reconciliation compares the company's book balance to the bank balance. If the company's accountant mistakenly recorded a deposit as $85 instead of $58, the book balance would be overstated by $27 ($85 - $58 = $27). Therefore, the error would be shown on the bank reconciliation as a $27 deduction from the book balance.

If the Company's Accountant Mistakenly Recorded a $58 Deposit as $85,the