While preparing the bank reconciliation,an accountant discovered that a $426 check returned with the bank statement had been recorded erroneously in the depositor's accounting records as $462.In preparing the bank reconciliation the appropriate action to correct this error would be to:
A)Add $36 to the balance per the depositor's records.
B)Add $36 to the balance per the bank statement.
C)Deduct $36 from the balance per the bank statement.
D)Deduct $36 from the balance per the depositor's records.

Question

Quizplus · Accepted Answer

The error was made in the depositor's records by recording the check for more than it was. To correct this, $36 (the difference between $462 and $426) should be subtracted from the depositor's records. However, since the question asks for the appropriate action to correct this error in preparing the bank reconciliation, and the options provided do not include subtracting from the depositor's records, the closest correct action is to add $36 to the balance per the depositor's records. This effectively corrects the overstatement of the payment.

While Preparing the Bank Reconciliation,an Accountant Discovered That a $426