Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 23 - No. 7)

When preparing a bank reconciliation, what is the impact of an error where the company recorded a $50 check as $500?
Add $450 to the book balance.
Subtract $450 from the bank balance.
Subtract $450 from the book balance.
Add $450 to the bank balance.

Explanation

The company overstated the reduction in cash by $450.

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