Question

The bookkeeper prepared a check for $68 but accidentally recorded it as $86. When preparing the bank reconciliation, this should be corrected by:

A. Adding $18 to the bank balance

B. Adding $18 to the book balance

C. Subtracting $18 from the bank balance

D. Subtracting $18 from the book balance.

Answer 1

B. Adding $18 to the book balance

Step-by-step explanation:

Because the bookkeeper accidentally reduced the book balance in $18 by recording the check payment for $86 instead of the actual $68, this mistake can simply be corrected by adding those $18 back to the book balance when making the bank reconciliation.