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27 November, 05:15

A check written by the company for $282 is incorrectly recorded by a company as $228. On the bank reconciliation, the $54 error should be added to the balance per books. deducted from the balance per books. added to the balance per bank. deducted from the balance per bank.

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  1. 27 November, 05:22
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    Deduct from the Balance per Books.

    Explanation:

    The company has written a check of $228 instead of $282. It means that the Cash Account is overstated by $54, so it must be deducted from the Cash Balance per books to reconcile the Cash Ledger.

    There is no need to reconcile the Bank Account since the company has written a check for correct amount but recorded it incorrectly. Such Accounting error is known as Transposition Error.
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