PRC-1 · Chapter 9 · Question 36 of 100
A customer deposited Rs. 5,000 directly into the bank account. The bank statement shows this, but the cash book does not. What is the correcting journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Bank Rs. 5,000, Credit Receivables Rs. 5,000
Explanation
The direct deposit increases the bank balance (Debit Bank) and reduces the amount owed by the customer (Credit Receivables).
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