During the month of July, Clanton Industries issued a check in the amount of $76

Question

During the month of July, Clanton Industries issued a check in the amount of $767 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Deduct the check amount from the book balance of cash.

Add the check amount to the book balance of cash.

Deduct the check amount from the bank balance.

Add the check amount to the bank balance.

Make a journal entry in the company records for an error.

During the month of July, Clanton Industries issued a check in the amount of $767 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Explanation / Answer

correct option is "A" -deduct the check amount from bank balance

[Since the company already deduct $ 778 from books so in order to reconcile we have to deduct 778 from bank]

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