During the month of July, Clanton Industries issued a check in the amount of $712 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

The multiple choices are:

A) Deduct the check amount from the book balance of cash.

B) Add the check amount to the book balance of cash.

C) Deduct the check amount from the bank balance.

D) Add the check amount to the bank balance

The correct option is c,deduct the check amount from the bank balance

Explanation:

The check of $712 was already deducted from the cash balance in the cash book when issued,in order to reflect in the bank balance too,it would be appropriate to deduct from the bank balance so as to have a like-for-like situation.

This implies that  the accountant at Clanton industries would begin bank reconciliation with bank balance in order to arrive at cash balance not the other way round.

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