PRC-1 · Chapter 9 · Question 24 of 100
The payment side of the cash book was under-casted by Rs. 2,000. To correct this error, the accountant must:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit the cash book by Rs. 2,000.
Explanation
An under-casted payment side means the credits are too low by Rs. 2,000. The cash book must be credited by Rs. 2,000 to fix the internal error.
More Bank Reconciliations MCQs
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