When reconciling a bank statement, what is a common tip to check for a transposition error?

When reconciling a bank statement, checking for a transposition error— which occurs when two digits are reversed— is a crucial step. The method that involves subtracting the balance you have from the bank's balance and then dividing the resulting number by 9 is linked to the nature of transposition errors.

For example, if a transaction amount is mistakenly recorded as $54 instead of $45, the difference between your recorded balance and the bank's balance will reflect this error in a way that is divisible by 9. Specifically, the difference here would be $9, which demonstrates how these types of errors often yield a difference that can be structured around the divisibility rule for 9. This rule is a mathematical property that assists in quickly identifying and verifying numerical errors.

Thus, the method of subtracting one balance from the other and dividing by 9 provides a systematic approach to isolate and recognize potential transposition errors, making this technique effective and appropriate for ensuring the accuracy of financial records during reconciliation.