PRC-1 · Chapter 9 · Question 55 of 100
A 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 this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit the cash book by Rs. 900
Explanation
The payment (credit) was overstated by Rs. 900. To reduce the excess payments and restore the balance, a debit entry of Rs. 900 is required in the cash book.
More Bank Reconciliations MCQs
- Q57Bank charges of Rs. 150 were omitted entirely from the cash book. Which of the following actions is required?
- Q58A payment of Rs. 1,200 was understated as Rs. 200 in the cash book. Which of the following actions is required?
- Q59A bank statement shows a credit (favorable) balance of Rs. 45,200. Outstanding (unpresented) cheques are Rs. 11,500, and uncleared…
- Q60If the receipt side of the cash book is found to be under-casted, what is the correcting entry in the cash book?
- Q61If the payment side of the cash book is found to be under-casted, what is the correcting entry in the cash book?