Question

Melon Corp. noticed that a check written by the company for $2,100 was incorrectly recorded in the accounting records as $1,200. How should this error be handled in a bank reconciliation

Answer 1

The way that the error should be handled in a bank reconciliation is that $900 should be subtracted from the cash balance in the accounting records.

What is a bank reconciliation?

A bank reconciliation statement simply summarizes banking and business activity, reconciling an entity's bank account with its financial records. ·

Since Melon Corp. noticed that a check written by the company for $2,100 was incorrectly recorded in the accounting records as $1,200, $900 should be subtracted from the cash balance in the accounting records.

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