Kruger Motors Inc. deposited a check in its bank account, but the check has not been credited by the end of the month. What effect is seen in the bank reconciliation statement?

A.

The amount is added to checkbook balance.

B.

The amount is deducted from the checkbook balance.

C.

The amount is added to the bank balance.

D.

The amount is deducted from the bank balance.

(A)

Step-by-step explanation:

Kruger Motors Inc. deposited a check in the bank account. If the checks are written, then it is debited from the bank balance but when checks are deposited then it is credit (added) in the bank balance.

But the checks being deposited is not yet credited means that it has to be credited in the bank balance but till the it is being credited in the checkbook balance.

Hence, option (A) is correct. The amount is added to checkbook balance.

To reconcile the balance,

C.

The amount is added to the bank balance. (where the reconciliation begins with the balance per bank statement)

Step-by-step explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items. These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.