PRC-1 · Chapter 9 · Question 13 of 100
A cheque of Rs. 1,678 was issued to a supplier but mistakenly recorded in the cash book as Rs. 1,890. What is the correction required in the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit cash book by Rs. 212.
Explanation
The payment (credit) was overstated by Rs. 212 (1890 - 1678). To reduce the excess credit and restore the balance, the cash book must be debited by Rs. 212.
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