Question

"a check was written by a business for $507 but was recorded in the journal as $705. how would this error be included on the bank reconciliation?"

Answer 1

A check of $507 has been recorded as $705 in the journal. The error is called as error of commission in the theories of bookkeeping. The error of commision must be reduced by the difference to reach the correct balance. In the bank reconciliation the difference that is $705-$507= $198 that is an error is included as reductions if the reconciliation is reaching the balance as per bank beginning as balance as per business books.