Question

Check #628 for $98 was not recorded in the ledger. On a bank reconciliation, this would be shown as a(n)

A. decrease in the bank account balance
B. increase in the ledger cash account balance (book balance)
C.increase in the bank account balance
D. decrease in the ledger cash account balance (book balance)

Answer 1

D. decrease in the ledger cash account balance (book balance)

Step-by-step explanation:

The check was written and issued but was not recorded in the ledger. The check is appearing in the bank statements but not in the book balance. It means the bank has already factored and adjusted the amount in the customer statements.

The customer needs to adjust their books to reflect the check amount. The amount should decrease the balance in the customer books balance.