PRC-1 · Chapter 9 · Question 35 of 100
The bank statement shows a direct debit of Rs. 1,200 for electricity. To update the records, the accountant should:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Credit the cash book by Rs. 1,200.
Explanation
A direct debit is an automated withdrawal from the bank account. To reflect this payment, the cash book must be credited.
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