PRC-1 · Chapter 9 · Question 83 of 100
A cheque for Rs. 600 deposited into the bank was incorrectly recorded as Rs. 6,000 in the cash book. What is the correct adjusting entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit the cash book by Rs. 5,400
Explanation
The deposit (debit) was overstated by Rs. 5,400 (6,000 - 600). To remove the excess balance, the cash book must be credited by Rs. 5,400.
More Bank Reconciliations MCQs
- 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?
- Q89Which side of the cash book is used to record cheques issued to suppliers?