PRC-1 · Chapter 9 · Question 63 of 100
A cheque of Rs. 50,000 issued to a supplier was mistakenly recorded twice on the payment side of the cash book. What is the correcting entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit the cash book by Rs. 50,000
Explanation
The payment was recorded twice, meaning the cash book was credited an extra 50,000. To correct this and restore the funds, debit the cash book by 50,000.
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