Multiple choice

A cheque of Rs. 2,000 received from our customer was dishonoured when it was presented for payment, but it was entered in credit side of Bank Column of Two-Columnar Cash Book. How will it be rectified in the Two-Columnar Cash Book?

  1. No rectification is required.

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

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

  4. Rs. 2,000 is to be entered in the debit side of cash column.
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A Correct answer
Explanation

This is correct that no rectification is required. The cheque received from our customer is dishonoured when presented for payment. Hence, customer's account will be debited while journalising it. Therefore, while entering it in the Bank Column of Cash Book, it will be entered in its credit side as by customer's account. So, no rectification is required.

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