Your Company Writes a Cheque for $857

Multiple Choice

Your company writes a cheque for $857.Which of the following describes how this transaction should be accounted for?

A) You add $857 to your recorded cash balance and the bank deducts $857 from your chequing account balance.
B) You deduct $857 from your recorded cash balance and the bank deducts $857 from your chequing account balance.
C) You add $857 to your recorded cash balance and the bank adds $857 to your chequing account balance.
D) You deduct $857 from your recorded cash balance and the bank adds $857 to your chequing account balance.