Accounting bank reconciliation help?

3. A check was written by a business for $205, but recorded in the cash payments journal as $502. How would this error be included on the bank reconciliation?

A) A deduction on the bank side

B) An addition on the book side

C) An addition on the bank side

D) A deduction on the book side

4. The bank recorded a $2,000 deposit as $200. How would this information be included on the bank reconciliation?

A) A deduction on the bank side

B) A deduction on the book side

C) An addition on the book side

D) An addition on the bank side

answer; B and D

Question is why? i dont get the question

1 Answer

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  • 8 months ago

    #3 - the business (for total clarity) would credit the $502 pmt to zero out the error and then db the correct $205 pmt. [shorthand is D to reduce pmt to correct amt.]   #4 - D - and call the bank and get it fixed. Considering the books are correct, there is no adjustment to the books side (so no to answer B. - accountant

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