ACC E113 Lecture Notes - Lecture 23: Bank Reconciliation
Document Summary
Bank errors and company errors: what to do. If a company receives a check and incorrectly inputs an amount that"s smaller than the actual check received, then under deductions, you put the difference. Ex: check for 491, company inputs 419, under deductions you put 72 (put nothing in additions) If a company receives a check and incorrectly inputs an amount that"s larger than the. Ex: check for 58. 20, company inputs 582, under additions you put 523. 80 (put check, then add the difference nothing in deductions) Two entries (1) for additions and (2) for deductions. 1) debit cash by the total amount of additions. Credit everything under additions (for errors under addition, you credit it. 2) debit everything under deductions (for errors under deductions, you debit it as as equipment) equipment) Credit cash by the total amount of deductions. 1) beginning afda balance + recovered receivable write offs = ending afda.
