A check was written by a business for $329,but was recorded erroneously in the cash ledger as $239.How would this error be included on the bank reconciliation?
A) An addition on the book side
B) A deduction on the bank side
C) A deduction on the book side
D) An addition on the bank side

Question

Quizplus · Accepted Answer

The check was recorded for $239 in the cash ledger, which means the business deducted $239 from their cash balance. However, the actual amount of the check was $329, so the correct deduction on the book side should be for $329. Therefore, the error should be included as a deduction on the book side of the bank reconciliation.

A Check Was Written by a Business for $329,but Was