PRC-1 · Chapter 9 · Question 25 of 100
The receipt side of the cash book was over-casted by Rs. 1,500. To correct this error, the accountant must:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit the cash book by Rs. 1,500.
Explanation
An over-casted receipt side means the debits are artificially inflated. To reduce the balance to its correct level, the cash book must be credited.
More Bank Reconciliations MCQs
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