PRC-1 · Chapter 9 · Question 97 of 100
If a cheque received from a customer is deposited into the bank on the same day, what is the initial double entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Bank, Credit Receivables
Explanation
A same-day deposit directly increases the bank balance (Debit Bank) and reduces the amount the customer owes (Credit Receivables).
More Bank Reconciliations MCQs
- 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?
- Q3Which of the following describes a credit balance in the bank column of the cash book?