The Bank statement of a company indicated a cheque was cleared for $1,550, however the actual cheque written by the company was for $1,505. This was a Bank error. How would you correct this error when doing a bank reconciliation?

(A) Deduct $1,505 on the Bank side

(B) Add $1,505 on the Book side

(C) Deduct $45 on the Bank side

(D) Deduct $45 on the Book side

A.

Deduct $1,505 on the Bank side

B.

Add $1,505 on the Book side

C.

Deduct $45 on the Bank side

D.

Deduct $45 on the Book side