Rick Company Deposited a Cheque for $675, but It Was

question 38

Essay

Rick Company deposited a cheque for $675, but it was recorded on their books as a cheque for $576. Determine the error amount and if the error is recorded on the book or bank side of the reconciliation.

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Definitions:

Purchases Journal

A record of transactions specifically used for tracking all purchases of goods and services on credit.

General Journal

A basic accounting ledger that records all transactions of a business in chronological order, providing a detailed account.

Ethical Standards

Principled guidelines that govern the conduct of individuals and organizations, ensuring actions are morally right and fair.

General Journal

The bookkeeping record in which all types of transactions are recorded in chronological order before they are transferred to specific accounts in the ledger.