PRC-1 · Chapter 9 · Question 82 of 100
A cheque for Rs. 600 deposited into the bank was incorrectly recorded as Rs. 60 in the cash book. What is the correct adjusting entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit the cash book by Rs. 540
Explanation
The deposit (debit) was under-recorded by Rs. 540 (600 - 60). To correct it, an additional debit of Rs. 540 is required in the cash book.
More Bank Reconciliations MCQs
- Q84A payment of Rs. 800 was incorrectly recorded as Rs. 80 in the cash book. What is the correct adjusting entry?
- Q85A payment of Rs. 800 was incorrectly recorded as Rs. 8,000 in the cash book. What is the correct adjusting entry?
- Q86A Bank Reconciliation Statement is normally prepared:
- Q87In the context of bank reconciliations, a bank overdraft means:
- Q88Which side of the cash book is used to record bank deposits and receipts?