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This will be corrected during the bank statement reconciliation. This process is utilized to confirm that the company's records and the banks records are in agreement. The cash balance of the bank accounts and the cash account are rarely identical (Horngren, Sundem, Elliot, Philbrick, 2006, p. 240) An $1,800 deduction on the bank statement is necessary to balance the statement with the company's cash account.
2. A deposit is recorded by the company bookkeeper as $350 instead of $530.
Reconciliation is necessary to the cash and revenues. Correction is achieved with a $180 debit in the cash account and $180 credit in the revenues account...
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