If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, how should this error be treated on the bank reconciliation?

To treat this in the bank reconciliation, the difference of $45 is deducted from the balance per bank.

Explanation:

Based on the information given;

The amount recorded (as a deduction) in the books was in excess of $45 being the difference between the actual amount $749 and the erroneous amount recorded $794.

As such, to reconcile the bank statement balance to the balance in the books, the difference $45 is deducted from the balance per bank.

However, in the computation of the book balance the excess amount $45 is added to the book balance to correct the error.

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