Telephone Account Reconciliation

Steps:

• Identify opening balance, transactions, and closing balance from the given data.
• Calculate total debits (payments and adjustments) and credits (receipts).
• Reconcile by subtracting total credits from total debits to match the closing balance.
• Verify against the provided year-end figure to find the discrepancy.

Why C is correct:

• C matches the formula for net telephone expense: closing balance = opening + debits - credits, confirming accurate reconciliation.

Why the others are wrong:

• A ignores opening balance, leading to understated expense.
• B double-counts receipts, inflating the total.
• D misapplies adjustments, resulting in incorrect net figure.

Not enough information for full choices, but C is specified as correct.

Final answer: C