PRC-1 · Chapter 9 · Question 12 of 100
If it is found that the receipt side of the cash book has been under-casted by Rs. 1,000, how is this error corrected?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit the cash book with Rs. 1,000.
Explanation
An under-casted receipt side means the total debits are short by Rs. 1,000. To correct this internal cash book error, an additional debit of Rs. 1,000 is made to the cash book.
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