PRC-1 · Chapter 9 · Question 89 of 100
Which side of the cash book is used to record cheques issued to suppliers?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The credit side
Explanation
Issuing a cheque reduces the bank balance (an asset). Decreases in assets are recorded on the credit side of the cash book.
More Bank Reconciliations MCQs
- Q91If the bank statement shows an overdraft of Rs. 5,000, and uncredited cheques amount to Rs. 2,000, what is the cash book balance (assuming…
- Q92If the adjusted cash book shows an overdraft of Rs. 4,000, and unpresented cheques amount to Rs. 3,000, what is the bank statement balance?
- Q93If the adjusted cash book shows an overdraft of Rs. 4,000, and uncredited cheques amount to Rs. 3,000, what is the bank statement balance?
- Q94The bank statement shows a debit balance (overdraft) of Rs. 10,000. The cash book shows a credit balance (overdraft) of Rs. 12,000…
- Q95In the context of a multiple-column cash book, a 'contra entry' represents: