Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 39 - No. 44)

What is the effect of an error where a company records a check for $100 when it should have been $1,000?
Add $900 to the book balance.
Subtract $900 from the book balance.
Add $900 to the bank balance.
Subtract $900 from the bank balance.

Explanation

The cash disbursement was understated. The book balance should be decreased.

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