Respuesta :
In the bank reconciliation they will need to add the difference to the company’s cash balance. They subtracted too much (541-514 = $27 difference) from their cash balance. They need to add $27 to their cash balance so that it will be correct and balance with the bank.
Answer:
To correct this, a debit entry of $27 is posted in the books.
Explanation:
Amount of check written and paid = $514
Amount recorded in the company's books = $541
Excess recognized in the books = $541 - $514
= $27
The check written and paid by the bank is recorded as a credit entry in the books. Hence the book has been over-credited with difference.
To correct this, a debit entry of $27 is posted in the books. The corresponding credit goes to the account that was initially debited when the entry of $541 was posted.
