A deposit of $1,250 that was incorrectly in the checkbook as 1,200 should be
a. added to the checkbook
b. deducted from the cheeckbook
c. added to the bank statement balance
d. deducted from the bank statement balance
ok so I know for sure its not c or d as the bank has the correct amount it was incorrect in the checkbook but im not sure if it should be deducted or added back. I think its added but Im not quite sure.
I don't think any of the choices is correct.
There are two ways to correct this in the checkbook.
1. Deduct the $1250 and then add $1200
2. Deduct $50.
Yeah I know that's why Im confused.....I know how to use and balance a checkbook but these are the only choices they gave me.
Please check with your instructor about this question. If that's not possible, please reread your text materials. If you want, you can post what you think is the appropriate passage from your text and we'll try to figure it out with you.
Working Capitol Management. Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cash and (ii) net working capitol.
To determine whether the deposit of $1,250 that was incorrectly recorded in the checkbook as $1,200 should be added or deducted, let's break down the situation.
Since the bank statement has the correct amount of $1,250, we can conclude that the mistake lies in the checkbook. So, we need to rectify the error in the checkbook.
To do this, we need to consider the effect on the checkbook's balance. Since the deposit was recorded as $1,200 rather than the actual amount of $1,250, the checkbook's balance is understated by $50.
To bring the checkbook back into balance, the deposit of $1,250 should be added to the checkbook. By adding the correct amount, the balance in the checkbook will accurately reflect the deposit made.
Therefore, the correct answer is a. The deposit of $1,250 should be added to the checkbook to correct the error.