Alco Corporation's accountant wrote a check to a supplier for $15,000. He then wrote himself a check for $5,000. For the first check he deducted $15,000 from the books, for the second check he wrote "void" in the check register. How would the accountant conceal his theft on the bank reconciliation?

Question

Quizplus · Accepted Answer

By overstating outstanding checks, the accountant can make it appear as though the $5,000 check is still pending and hasn't cleared the bank, thus concealing the theft.

Alco Corporation's Accountant Wrote a Check to a Supplier for $15,000