A check drawn by a depositor for $295 in payment of a liability was recorded in the depositor's book as $925.The $630 difference would be included on the bank reconciliation as a(n):

Question

Quizplus · Accepted Answer

The depositor recorded the check as $925 instead of $295, overstating the cash payment by $630. To correct this error, $630 should be added back to the cash balance per books.

A Check Drawn by a Depositor for $295 in Payment