Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 8)
How are errors in the cash book or bank statement corrected in the bank reconciliation process?
By adjusting the bank balance only.
By adjusting the book balance only.
By correcting the appropriate balance (bank or book).
Bank reconciliations do not correct errors.
Explanation
Errors made by the company are corrected in the book balance, while errors made by the bank are corrected in the bank balance.
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