PRC-1 · Chapter 9 · Question 49 of 100
What is the correct journal entry for a bank charge of Rs. 500 recorded in the bank statement but missed in the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Bank Charges Rs. 500, Credit Bank Rs. 500
Explanation
To record the expense and the reduction in the bank balance, you debit the Bank Charges expense account and credit the Bank account.
More Bank Reconciliations MCQs
- Q51Which of the following correctly describes an unfavorable (overdraft) balance in the cash book?
- Q52Which of the following correctly describes a favorable balance on a bank statement?
- Q53An unfavorable (overdraft) balance on a bank statement is represented by a:
- Q54If bank charges of Rs. 500 were accidentally recorded twice in the cash book, how should this be corrected in the adjusted cash book?
- Q55A payment to a supplier of Rs. 1,200 was overstated as Rs. 2,100 in the cash book. Which of the following entries is required to correct…