PRC-1 · Chapter 2 · Question 77 of 100
When 'Gamma Traders' receives its monthly bank statement, the accountant uses it to update the internal records. Which book of prime entry is immediately updated based on items like bank charges seen on the statement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Cash Book
Explanation
Bank charges, direct debits, and standing orders that appear on the bank statement represent actual outflows of money. They must be recorded directly on the payment side of the Cash Book.
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