New Brand Electronics accountant wrote a check to a supplier

New Brand ?Electronics\' accountant wrote a check to a supplier for inventory in the amount of $ 1 comma 800 but erroneously recorded it on the? company\'s books as $ 1 comma 080. She discovered this when she saw the monthly bank statement and noticed that the check had cleared the bank for $ 1 comma 800. How would this be handled on the bank? reconciliation? Enter the transaction into the accounting equation New Brand?\'s accountant needs to make to correct its accounting records. The accountant should ? add deduct the difference of ?$ nothing from the ? bank book balance when reconciling the bank statement. Enter the transaction into the accounting equation New Brand?\'s accountant needs to make to correct its accounting records. Some of the account names will be abbreviated. ?(Use parentheses or a minus sign when entering account decreases. Use only the necessary input? lines.) Shareholders\' Equity Assets = Liabilities + Contributed Capital + Retained Earnings $ Account $ Account $ Account $ Account = + + = + +

Solution

The amount $1 comma 800 which was erroneously recorded in books as $1 comma 080 will be corrected by deducting the balance amount of $0 comma 720 from books.

Accounting equation will be:

The accountant should deduct the difference of $0,720 from the book balance when reconciling the bank statement.