Which one of the following transactions would be recorded on the credit side of the bank general ledger account during the bank reconciliation process for a business for May 2023?
Understand the Problem
The question is asking which transaction should be recorded on the credit side of the bank general ledger for a business in May 2023 as part of the bank reconciliation process. It involves understanding accounting principles related to debits and credits in financial statements.
Answer
The correct credit amount from a debtor: R880.
The correct transaction is: 'The bank statement indicates the correct credit amount from a debtor of R880. It has been erroneously recorded in the business' books as R380.00.'
Answer for screen readers
The correct transaction is: 'The bank statement indicates the correct credit amount from a debtor of R880. It has been erroneously recorded in the business' books as R380.00.'
More Information
In a bank reconciliation process, credit entries typically reflect deposits received by the bank on behalf of the business. Thus, any corrections involving such deposits are credit transactions.
Tips
A common mistake is assuming withdrawals or expenses would be credited. Instead, focus on deposits or receipts.
Sources
- Bank Reconciliation: Purpose, Example, Process - QuickBooks - Intuit - quickbooks.intuit.com
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