Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 36 - No. 1)
In a company's bank reconciliation, a check that was recorded in the cash disbursements journal for $200 but cleared the bank for $20. How should this difference be treated?
Add $180 to the bank balance.
Subtract $180 from the bank balance.
Add $180 to the book balance.
Subtract $180 from the book balance.
Explanation
The company needs to reduce the book balance by the error amount.
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