While preparing the bank reconciliation, an accountant with Elliter noticed that an error had been made in recording a deposit received by the company. The receipt had been recorded by the company as $729 yet the correct amount of the deposit on the bank statement was $279. Which of the following reconciling adjustments is necessary?

1.

Deduct $450 from the bank statement balance

2.

Add $450 to the bank statement balance

3.

Add $450 to the company's records

4.

Deduct $450 from the company's records

The company recorded a deposit as $540, but it correctly cleared the bank for $450. In the Bank Reconciliation you will need to:

1.

Subtract from bank balance $90

2.

Add to book balance $90

3.

Subtract from book balance $90

4.

Add to bank balance $90

The bank statement shows a NSF cheque of $50.

When preparing the bank reconciliation you should:

	1.	Subtract from the book balance
	2.	Add to the bank balance
	3.	Add to the book balance
	4.	Subtract from the bank balance thank you !