While reconciling the checking account, the staff accountant for Jetway Corp. no

Question

While reconciling the checking account, the staff accountant for Jetway Corp. noticed that an error had been made in recording a check received by the company. Jetway recorded the receipt as $729 and the correct amount of the check was actually $279. What reconciling adjustment should the accountant make to correct this error? 1 Add $450 to the company's book balance. .2. Deduct $450 from the bank statement balance. 3. Add $450 to the bank statement balance. 4. Deduct $450 from the company's book balance While reconciling the checking account, the staff accountant for Jetway Corp. noticed that an error had been made in recording a check received by the company. Jetway recorded the receipt as $729 and the correct amount of the check was actually $279. What reconciling adjustment should the accountant make to correct this error? 1 Add $450 to the company's book balance. .2. Deduct $450 from the bank statement balance. 3. Add $450 to the bank statement balance. 4. Deduct $450 from the company's book balance

Explanation / Answer

Due to error, COmpany Book balance has an extra (729-279) $450 credited. So Ans is 4 Deduct $450 from the company's book balance.

No entry is reqd at Bank end as Bank will clear the cheque with correct amount of $279 only.

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