PRC-1 · Chapter 9 · Question 14 of 100
The bank correctly recorded the payment of a cheque as Rs. 236, while in the cash book it was written as Rs. 263. What should be done to correct it?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit (Add) Rs. 27 in the cash book.
Explanation
The cash book payment was overstated by Rs. 27 (263 - 236). To reverse the excess payment recorded, the cash book must be debited (added back) by Rs. 27.
More Bank Reconciliations MCQs
- Q16Which of the following represents a pure 'timing difference' in bank reconciliation?
- Q17A favorable balance as per the cash book means:
- Q18If a BRS starts with a favorable (debit) balance as per the Cash Book, how are unpresented cheques treated to arrive at the bank statement…
- Q19If a BRS starts with a favorable (debit) balance as per the Cash Book, how are uncredited lodgments treated to arrive at the bank…
- Q20When preparing an adjusted cash book, which of the following will decrease the cash book balance?