PRC-1 · Chapter 9 · Question 50 of 100
A payment of Rs. 1,200 was recorded in the cash book as Rs. 2,100. What is the correcting entry in the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit the cash book by Rs. 900.
Explanation
The payment was recorded Rs. 900 too high (2100 - 1200). To reduce the payment side (credits), a debit of Rs. 900 must be entered in the cash book.
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