PRC-1 · Chapter 9 · Question 38 of 100
A cheque for Rs. 8,500 was deposited into the bank but was recorded in the cash book as Rs. 5,800. What is the entry to correct the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit cash book by Rs. 2,700
Explanation
The deposit (debit) was under-recorded by Rs. 2,700 (8500 - 5800). To correct it, the cash book needs an additional debit of Rs. 2,700.
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