PRC-1 · Chapter 9 · Question 27 of 100
To correct the error of recording bank charges twice in the cash book, the entity should:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit the cash book.
Explanation
To reverse the erroneous second credit (deduction) made in the cash book, the accountant must debit the cash book, thereby adding the funds back.
More Bank Reconciliations MCQs
- Q29A post-dated cheque received from a customer and kept in the safe should be:
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- Q33The balance as per Bank Statement is Rs. 5,000 (Overdraft). Unpresented cheques are Rs. 2,000. Uncredited lodgments are Rs. 4,000. What is…