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View Full Version : Add or deduct an error in bank reconciliation


selenazhang8888
Oct 16, 2008, 05:01 PM
The check written by a company was recorded on the books as $470, but it cleared the bank at the correct amount the check was made out for of $4700. I thought the ans should be add the book balance 4230. However the ans deduct in book balance 4230.
WHY is that?? :confused:

pready
Oct 18, 2008, 12:43 PM
Your Book Balance is over stated by $4,230. So you have to deduct the $4,230 to get to the correct Book Balance.