If a check correctly written and paid by the bank for $236 is incorrectly recorded in the company's books for $263, how should this error be treated on the bank reconciliation

Difference is added to book balance

Explanation:

The error overstated the amount of money that the business paid by check which means that it understated the bank balance of the company.

The difference between the amounts should therefore be added to the book balance to reconcile it to the bank balance;

= 263 - 236

= $27

$27 will be added to the book balance.

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