Final answer:
In bank reconciliation, errors on bank statements require adjusting the bank balance and notifying the bank, not the book balance.
Step-by-step explanation:
When performing a bank reconciliation, if an error is found on the bank statement, an adjustment must be made to the bank balance, and the bank should be notified immediately. It is not typically necessary to adjust the book balance for this type of error unless it reflects a transaction that was incorrectly recorded by the company. Instead, the bank must correct their records to reflect the accurate balance. This process ensures that the records maintained by the bank and the company's book balance are in agreement and that all transactions are accurately recorded.