If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be:
A) Added to the book balance of cash as an outstanding check.
B) Deducted from the bank balance of cash as an outstanding check.
C) Deducted from the book balance of cash as an outstanding check.
D) Ignored in preparing the period's bank reconciliation as an outstanding check.
E) Added to the bank balance of cash as an outstanding check.

Question

Quizplus · Accepted Answer

The check is still outstanding, so it should be deducted from the bank balance of cash as it has not yet cleared the bank.

If a Check That Was Outstanding on Last Period's Bank