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    trans_am_baby's Avatar
    trans_am_baby Posts: 4, Reputation: 1
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    #1

    Mar 18, 2010, 04:47 PM
    Bank reconciliation check error
    If the book check amount was written incorrectly for 40 and the bank was written correctly for 400, what would the adjusting entry be?
    I thought credit account payable, but what would I debit?
    trans_am_baby's Avatar
    trans_am_baby Posts: 4, Reputation: 1
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    #2

    Mar 18, 2010, 04:51 PM
    I also have a bank service charge and a safety deposit box fee that I debit misc exp and credit cash, and interest earned where I debit cash and credit interest revenue for the adjusting journal entries.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Mar 19, 2010, 02:16 AM
    Quote Originally Posted by trans_am_baby View Post
    If the book check amount was written incorrectly for 40 and the bank was written correctly for 400, what would the adjusting entry be?
    I thought credit account payable, but what would i debit?
    You're doing a bank rec. All entries involve CASH.

    But it's backwards. If you've already got the bank rec done and it balances, it's easy to do the entries.

    Take your additions. Because those are additions, you will be debiting cash for that total. Everything else will be a credit, automatically.

    Then do your subtractions. Because they are subtractions, you will be crediting cash for that total. Everything else will be a debit, automatically.

    Your check correction should be under the subtract section, meaning it's a credit to cash. And the other is automatically a debit.
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    trans_am_baby Posts: 4, Reputation: 1
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    #4

    Mar 19, 2010, 05:02 PM

    Thanks for the help :)
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #5

    Mar 21, 2010, 05:22 AM

    You're welcome.
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