PRC-1 · Chapter 9 · Question 57 of 100
Bank charges of Rs. 150 were omitted entirely from the cash book. Which of the following actions is required?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit the cash book by Rs. 150
Explanation
Unrecorded expenses like bank charges decrease the true bank balance. Thus, a credit entry of Rs. 150 is required in the cash book to update it.
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