PRC-1 · Chapter 9 · Question 76 of 100
A dividend of Rs. 8,000 was collected directly by the bank on behalf of the business but not entered in the cash book. To adjust the cash book, the accountant should:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit the cash book
Explanation
A direct receipt of a dividend increases the bank balance. To update the business records, it must be recorded by debiting the cash book.
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