[thatguywith898]

This is bank reconciliation work I am doing:

Hi, I needed understand if I am correct on this. If a bank has an error on a cheque that you have deposited and they made the cheque into a larger amount than it should have been, it should be deducted from the cash balance per bank right? If it was smaller than the amount that should have been deposited it is added to the cash balance per bank right?

Also, please confirm if this is right as well. A company makes errors 1.recording its cheques that they have given to other people, and also have made errors 2.recording it's deposits into their own bank.

1. If they add more value on their records than what the actual cheques were when they were given to others than the balance per books should be increased. And in the other way, if they were to decrease the value on their records from what that check really was, they should deduct from their balance per books when doing a bank reconciliation of course.

2.Now about the deposits made into their own banks: If they add value on their records about these deposits, they need to deduct from the balance per books, and similarly when they reduce value on their records for a deposit made into their own account, they should add to the balance of books.

Is this right, or do I have an mistakes?

[morgaine300]

If a bank has an error on a cheque that you have deposited and they made the cheque into a larger amount than it should have been, it should be deducted from the cash balance per bank right? If it was smaller than the amount that should have been deposited it is added to the cash balance per bank right?

No. Same mistake most people make, because you're not considering that it's a check you're working with. You're trying to add and deduct the check amount itself, but aren't correcting the balance in the correct way. Checks are subtractions to begin with. If the bank recorded the check at a larger amount, that means they subtracted too much already. So you need to add it back in. And vice versa.

If they add more value on their records

I'm not answering this because I don't want to try to interpret what you mean by "adding more value on their records." Hopefully the answer above will help you to answer this part too.