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ADuring a bank reconciliation, a deposit recorded by the bank but not in the companys ledger Cash account is... a. added to
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Answer #1

Option (b) is correct

If a deposit is recorded by the bank but not in the company's ledger cash account, then it is added to the ledger cash account balance only. This is because by adding it to the ledger cash account, the ledger cash account will be reconciled and equal in balance with bank books or bank statement. So, to make both books reconcile and to arrive at true balance, it will be added to the ledger cash account.

Option (a) is incorrect as if it is added to both books, then it bank books will show larger balance and will not be reconciled.

Option (c) is incorrect as if we add it to bank balance only, tthen again bank books will show larger balance and will not be reconciled.

Option (d) is incorrect as if we subtract it from bank balance and add it to the cash account balance then cash books balance will be larger and the books will not be reconciled.

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