PRC-1 · Chapter 2 · Question 72 of 100
'Falcon Security' pays its employees' monthly salaries total of Rs. 800,000 via direct bank transfer. Which book of prime entry captures this data?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Cash Book
Explanation
Any payment made through the banking system must be recorded in the Cash Book on the payment (credit) side, under the bank column.
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