A check of $75 deposited by a company was returned to the bank for nonsufficient funds.How would this information be included on the bank reconciliation?
A) A deduction on the bank side
B) An addition on the bank side
C) An addition on the book side
D) A deduction on the book side

Question

Quizplus · Accepted Answer

The company's books will show that $75 was deposited in the bank account, so this deposit would be included on the book side of the reconciliation. However, since the check was returned for nonsufficient funds, the bank will deduct the $75 from the account. Therefore, it should be a deduction on the book side of the bank reconciliation.

A Check of $75 Deposited by a Company Was Returned