Question

For which of the following errors should $90 be subtracted from the cash balance per bank statement on a company's bank reconciliation?

1) A check written by the company for $780 was incorrectly recorded on the company's books as $870.
2) A deposit of $650 was incorrectly recorded by bank as a deposit of $560.
3) A check written by the company for $120 was incorrectly recorded by the bank as $210.
4) A check written by the company for $540 was incorrectly recorded by the bank as $450.

Answer 1

For error number 3, $90 should be subtracted from the cash balance per bank statement on the company's bank reconciliation.

Step-by-step explanation:

For error number 3, where a check written by the company for $120 was incorrectly recorded by the bank as $210, $90 should be subtracted from the cash balance per bank statement on the company's bank reconciliation.