Question

If a check correctly written and paid by the bank for $635 is incorrectly recorded on the company's books for $653, the appropriate treatment on the bank reconciliation would be to:_______

a. add $45 to the book's balance.
b. deduct $549 from the book's balance.
c. subtract $45 from the book's balance.
d. deduct $45 from the bank's balance.

Answer 1

a. add $45 to the book's balance

Step-by-step explanation:

In a situation where a check which was correctly written and as well paid by the bank for the amount of $638 was incorrectly recorded as the amount of $683 on the company's books which means that the appropriate treatment on the bank reconciliation statement would be to add the amount of $45 ( $683-$638) to the book's balance.