33. Delmar Co. prepares a four-column bank reconciliation. Check No. 859 was wri
ID: 2561589 • Letter: 3
Question
33. Delmar Co. prepares a four-column bank reconciliation. Check No. 859 was written for $85.90 on the books, but the check was written and cleared the bank for the correct amount, $58.90. The correct treatment on the reconciliation would be
a.
on the bank side, deduct $27 from payments and add $27 to ending balance
b.
on the book side, deduct $27 from payments and add $27 to ending balance
c.
on the book side, add $27 to payments and deduct $27 from ending balance
d.
on the bank side, add $27 to receipts and add $27 to ending balance
a.
on the bank side, deduct $27 from payments and add $27 to ending balance
b.
on the book side, deduct $27 from payments and add $27 to ending balance
c.
on the book side, add $27 to payments and deduct $27 from ending balance
d.
on the bank side, add $27 to receipts and add $27 to ending balance
Explanation / Answer
Answer B. On the book side, deduct $ 27 from payment adn add $27 to ending balance
The explanation is as follows:
As the Check written is $ 85.90 but presented for payment $ 58.90. Therefore, payment side of book will get decreased by $27.00 . It will result in the increase in the balance of book.
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