Question

If a check correctly written and paid by the bank for $436 is incorrectly recorded on the company's books for $463, the appropriate treatment on the bank reconciliation would be to

Answer 1

Answer:

$27

Explanation:

Relevant Data provided

Incorrectly record = $463

Correctly paid = $436

The appropriate treatment on the bank reconciliation is shown below:-

Appropriate treatment on the bank reconciliation = Incorrectly record - Correctly paid

= $463 - $436

= $27

Therefore $27 need to be added in the book balance and we have applied the above formula to know the appropriate treatment.