Multiple choice

The commission of Rs. 1,000 was charged by bank, but it was entered in debit side of Bank Column of Two-Columnar Cash Book. How will you rectify this mistake in the Two-Columnar Cash Book?

  1. No rectification is required.

  2. Rs. 2,000 is to be entered in credit side of cash column.

  3. Rs. 2,000 is to be entered in the credit side of bank column.

  4. Rs. 1,000 is to be entered in the debit side of bank column.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is correct. We have to enter Rs. 1,000 in the credit side of bank column as it decreases the balance in the bank. But we have entered Rs. 1,000 in the debit side of bank column. Hence, double of Rs. 1,000, i.e. Rs. 2,000 will be entered in the credit side of bank column.

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