The bank statement reveals an EFT payment made to one of the company's suppliers that has not yet been recorded in the ledger.How would this information be included on the bank reconciliation?
A)an addition on the bank side
B)a deduction on the bank side
C)a deduction on the book side
D)an addition on the book side

Question

Quizplus · Accepted Answer

Since the payment has not yet been recorded in the ledger but has already been deducted from the bank balance, it would need to be deducted from the book balance. Therefore, the correction should be made on the book side as a deduction.

The Bank Statement Reveals an EFT Payment Made to One