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1. • CommentAuthorhenry
   • CommentTimeDec 1st 2007

    
   There is this question that says that "a check of $245,000 drwan by the firm had benn charged by the bank in error to another firm's a/c"; How do we treat this transaction?
2. • CommentAuthornarayanswamy
   • CommentTimeDec 17th 2007

    
   i am enable to understand your question
3. • CommentAuthorShamsuddeen
   • CommentTimeFeb 9th 2008

    
   You do not need to pass any entry in your books instead just notify the bank to rectify the error in their books.
4. • CommentAuthorlee
   • CommentTimeFeb 11th 2008

    
   if you start with the bank statement balance in preparing your bank reconciliation,you should add back(credit) to the beginning balance of bank balance and stated bank error in your title........no adjustment is needed in your cash book........
5. • CommentAuthorabril
   • CommentTimeFeb 11th 2008

    
   here's the correct analysis..
   
   .. the company drawn the check, therefor the bank should deduct it to the company's account. what happened instead was, the bank erroneously deduct it to somebody else's account.. the company's bank account is overstated, so you have to deduct the figure to the unadjusted bank balance. it was the bank who made the error so no adjustment on company's book.