The bank has paid life insurance premium of Rs. 30,000 on behalf of customer, but it is credited in the cash column of Two - Columnar Cash Book. How would it be rectified in the Two - Columnar Cash Book?

This is correct. The bank balance of the customer would be decreased because the bank has paid Rs 30,000 as life insurance premium on behalf of the customer. Hence, it is to be entered in credit side of bank column, but is entered in credit side of cash column. Therefore, Rs. 30,000 which is not entered in credit side of bank column would be entered now in its credit side. Rs. 30,000 which is entered in credit side of cash column by mistake would be entered now in its debit side.