The hank erroneously charged Tropical Services account for $450.50 for a check that was cor- rectly written and recorded by Tropical Services as $540.50. To reconcile the bank account of Tropical Services at the end of the month, you would: A. add $90 to the cash balance according to the bank statement. B. add $90 to the cash balance according to Tropical Services' records. C deduct $90 from the cash balance accord- ing to the bank statement. D. deduct $90 from the cash balance accord- ing to Tropical Services' records.

The hank erroneously charged Tropical Services account for $450.50 for a check that was cor- rectly written and recorded by Tropical Services as $540.50. To reconcile the bank account of Tropical Services at the end of the month, you would: A. add $90 to the cash balance according to the bank statement. B. add $90 to the cash balance according to Tropical Services' records. C deduct $90 from the cash balance accord- ing to the bank statement. D. deduct $90 from the cash balance accord- ing to Tropical Services' records.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

The bank erroneously charged tropical services account for dollar 45050 for a check that was correctly

The hank erroneously charged Tropical Services
account for $450.50 for a check that was cor-
rectly written and recorded by Tropical Services as
$540.50. To reconcile the bank account of Tropical
Services at the end of the month, you would:
A. add $90 to the cash balance according to
the bank statement.
B. add $90 to the cash balance according to
Tropical Services' records.
C deduct $90 from the cash balance accord-
ing to the bank statement.
D. deduct $90 from the cash balance accord-
ing to Tropical Services' records.

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