5) for which of the following errors would the appropriate amount be subtracted from the balance per books…

5) for which of the following errors would the appropriate amount be subtracted from the balance per books on a bank reconciliation? a) check written for $63, but recorded by the company as $36 b) deposit of $600 recorded by the bank as $60 c) check written for $57, but recorded by the company as $75 d) a returned $300 check recorded by the bank as $30 answer: a

5) for which of the following errors would the appropriate amount be subtracted from the balance per books on a bank reconciliation? a) check written for $63, but recorded by the company as $36 b) deposit of $600 recorded by the bank as $60 c) check written for $57, but recorded by the company as $75 d) a returned $300 check recorded by the bank as $30 answer: a

Answer

Explanation:

Step1: Analyze bank - reconciliation errors

In bank - reconciliation, when the company's recorded amount for a check is higher than the bank - recorded amount, the difference should be subtracted from the balance per company's records.

Step2: Evaluate each option

  • Option A: A check written for $63 but recorded by the company as $36. The company under - recorded the check amount. So, we need to subtract the difference ($63 - $36=$27) from the company's balance.
  • Option B: A check written for $57 but recorded by the bank as $60. Here, the bank over - recorded the check amount. We would add the difference ($60 - $57 = $3) to the company's balance.
  • Option C: A deposit of $600 recorded by the bank. This is a correct deposit and does not require an adjustment to subtract from the company's balance.
  • Option D: A returned $300 check recorded by the bank as $30. The bank under - recorded the returned check amount. We would add the difference ($300 - $30=$270) to the company's balance.

Answer:

A. A check written for $63, but recorded by the company as $36