Multiple choice

Rs. 6,000 is deposited in bank by Ram from his cash in business, but is entered only in the debit side of bank column. How will the amendments made in the Two - Columnar Cash Book to rectify the mistake?

  1. Rs. 6,000 is entered in the credit side of cash column only.

  2. Rs. 6,000 is entered in the credit side of cash column, and Rs. 6,000 is entered in the debit side of bank column.

  3. Rs. 6,000 is entered in the credit side of bank column and Rs. 6,000 is entered in the debit side of cash column.

  4. Rs. 6,000 is entered in the debit side of bank column only.
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A Correct answer
Explanation

This is correct. It is a contra transaction. As the balance at bank would increase when cash is deposited, it would be entered in debit side of bank column and credit side of cash book but the credit has not been given earlier.

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