A check issued for $1,980 to pay a vendor on account was recorded in the firm's records as $1,890; the canceled check was properly listed on the bank statement at $1,980. To arrive at an accurate balance on a bank reconciliation statement, the error should be:

Question

Quizplus · Accepted Answer

The error was made in recording the check in the firm's records or book balance, so it should be deducted from the book balance to arrive at an accurate balance on the bank reconciliation statement. The bank statement balance already reflects the correct amount, so the error should not be added to it.

A Check Issued for $1,980 to Pay a Vendor on Account