Type of reconciling item Entry? Deduct from the cash balance per boole Does not affect the bank reconciliation Add to the cash balance per books Deduct from the cith balanca per bank NO 1. A deposit of collections on account from customers was made, but the amount did not match what appeared on the bank statement. The correct amount of $4,510, shown on the bank statement should have been used in Larkspur's books instead of the amount recorded of $4,600. 2. Included on the bank statement is an automatic charge for Larkspur Service's monthly mortgage payment. The amount of the payment was $800 of which $490 is principal. Larkspur's bookkeeper always waits for the transaction to appear on the bank statement before recording it because the amount varies from month to month 3. When retracing cheque payments to the journals during the bank reconciliation process, it was noticed that a $1,690 cheque, payable to Larkspur Service's landlord for the current month's rent, was charged to Advertising Expense. 4. On the previous month's bank reconciliation, an outstanding cheque for $440 for a final pay cheque of a part-time employee had not yet been cashed. On the current month bank statement, the cheque has still not cleared the bank account. 5. Larkspur has an agreement with RBC to collect notes receivable and any outstanding interest on the notes, Larkspur's bookkeeper waits to record any collection until the amounts are reported by RBC, because it is not predictable how much of the collection will be interest. On the current bank statement, an entry appears for a deposit of $1,005 for a collection of a note with a principal amount of $1,015. 6. Appearing on the bank reconciliation is a charge for an NSF cheque of $530 which had been deposited earlier in the month by Larkspur as a payment on account by a new customer. RBC had added an additional charge of for processing the NSF cheque. Because the customer was new, Larkspur warned the customer that any NSF charges would be added to the amount owing from the customer. 7. A chaque correctly issued in the amount of $490 as a payment on account to a supplier was Incorrectly recorded in the books as $590. 8. Two cheques totalling $315, which were outstanding at the end of the last month, cleared in the current month's bank statement. 9. Included in the bank statement are charges of $45 for the use of debit cards by Larkspur's customers. Larkspur waits for the information to be processed by the bank before recording them In the books. Add to the cash balance per bank Yes Add to the cash balance per books ya Deduct from the cash balance per books Yes Add to the cash balance per bank No. Deduct from the chance de book