PRC-1 · Chapter 9 · Question 9 of 100
Bank charges of Rs. 150 appeared in the bank statement but had not been recorded in the cash book. To update the records, the accountant should:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit the cash book with Rs. 150.
Explanation
Bank charges represent an expense and a reduction in the bank balance. Therefore, they must be recorded by crediting the cash book.
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