Question

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be: g

Answer 1

Answer:

If the outstanding check was not cancelled by the bank yet, then it must be subtracted from the bank account balance when you are preparing a reconciliation of the bank account.

The person or business that received the check will eventually cash it out, so there is no reason why you should consider that money in your bank account as yours. checks are basically cash payments that may or may not be delayed. Checks last 6 months before they expire, so there is still a lot of time for the person or business to cash it.

Answer 2

Answer:

Explanation:

The check is still outstanding (still not subtracted by bank) so add it to the book balance to obtain the bank balance.