During the current month, Jones wrote a check for $989.25, but recorded it on hi
ID: 2559264 • Letter: D
Question
During the current month, Jones wrote a check for $989.25, but recorded it on his books as a credit to cash in the amount of $892.95. To reconcile the bank statement, he must
a.
Add $96.30 to the balance per the bank statement
b.
Subtract $96.30 from the balance per the bank statement
c.
Add $96.30 to the balance per the books
d.
Subtract $96.30 from the balance per the books
a.
Add $96.30 to the balance per the bank statement
b.
Subtract $96.30 from the balance per the bank statement
c.
Add $96.30 to the balance per the books
d.
Subtract $96.30 from the balance per the books
Explanation / Answer
Since the Bank statement will reflect a deduction of $989.25 but the books of accounts will reflect a deduction of $892.95, the balance as per books will be on the higher side by $96.30. So, to reconcile books with Bank statement, balance as per books will be reduced by $96.30
So, as per above discussion, option d is the correct option
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