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2 October, 06:51

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a (n) : A. addition to the balance per the company's records B. addition to the balance per the bank statement C. deduction from the balance per the bank statement D. deduction from the balance per the company's records.

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  1. 2 October, 10:04
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    D - deduction from the balance per the company's records.

    Explanation:

    In the company's books, the payment was erroneously recorded as $695, thus understating the amount that was paid. But if the check was cleared at the bank, the bank statement will show a deduction of $965, which is the correct figure.

    Therefore the balance as as per the company's records should be reduced by $270, ie $965 - $695.
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