A check was written by a business for $205,but was recorded in the cash payments journal as $502.How would this error be included on the bank reconciliation?
A) A deduction on the bank side
B) An addition on the book side
C) An addition on the bank side
D) A deduction on the book side

Question

Quizplus · Accepted Answer

Since the check was recorded in the cash payments journal for more than its actual amount, the company's books show less cash than they actually have. Correcting this error involves adding the difference to the book side to align the book balance with the actual cash balance.

A Check Was Written by a Business for $205,but Was