A check of $300,000,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 check for $300,000 was deposited by the company, meaning it would have been accounted for on the books as an addition. However, since the check was returned for nonsufficient funds, the actual balance in the bank account would not reflect this deposit. Therefore, the correct adjustment to make on the book side of the reconciliation would be a deduction of $300,000 to reflect the fact that the deposit was not actually successful.

A Check of $300,000,deposited by a Company,was Returned to the Bank