If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be:

Added to the book balance of cash.

Deducted from the book balance of cash.

Added to the bank balance of cash.

Deducted from the bank balance of cash.

Ignored in preparing the period's bank reconciliation.

The correct answer is letter "D": Deducted from the bank balance of cash.

Explanation:

Bank reconciliation refers to the comparison companies make of the value of banking accounts in their books and the actual balance of the company in the bank. Both values, the book value, and the bank value must be the same, otherwise, the company has incurred in an error recording its transactions or the banks have made a mistake processing payments.

If a check was pending for payment of the previous period bank reconciliation and it was not cancelled by the bank during the current period, the amount of that check will be deducted from the bank's balance of the company for the current period bank reconciliation.

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explanation:

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