PRC-1 · Chapter 9 · Question 96 of 100
Which of the following is the correct double entry for recording cash deposited into the bank?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit Bank, Credit Cash
Explanation
Depositing cash into the bank increases the bank asset (Debit Bank) and decreases the cash asset (Credit Cash). This is a contra entry in the cash book.
More Bank Reconciliations MCQs
- Q98To adjust for a cheque that was returned marked 'NSF' (Not Sufficient Funds) by the bank, the accountant must:
- Q99What does the letter 'C' in the folio column of a cash book indicate?
- Q100Reconciling items like unpresented cheques and uncleared lodgements in a Bank Reconciliation Statement are naturally cleared when:
- Q1What is the primary purpose of preparing a Bank Reconciliation Statement (BRS)?
- Q2If a bank statement shows a 'Debit' balance, what does this signify for the business?