Question

If the bookkeeper mistakenly records a deposit of $360 as $630, the error would be shown on the bank reconciliation statement as a:

a) $270 addition to the bank balance
b) $270 addition to the book balance
c) $270 deduction from the bank balance
d) $270 deduction from the book balance

Answer 1

The error would be shown on the bank reconciliation statement as a $270 deduction from the bank balance.

Step-by-step explanation:

The error would be shown on the bank reconciliation statement as a $270 deduction from the bank balance.

When the bookkeeper mistakenly records a deposit of $360 as $630, it means that $270 was overrecorded as a deposit. In the bank reconciliation process, this overrecorded amount of $270 would be deducted from the bank balance to correct the error.

For example, if the bank balance before the error was $1,000, it would be adjusted by deducting $270 to reflect the correct bank balance of $730.