Rakesh has made the payment to its creditor of Rs. 1,450 through cheque, but credited it as Rs. 1,540 in the bank column of his Two - Columnar Cash Book. How will Rakesh make amendments in his Two - Columnar Cash Book?

This is correct. As the payment of only Rs. 1,450 is made through cheque by Rakesh, the bank balance should be decreased by Rs. 1,450 but Rakesh has entered Rs. 1,540 in the credit side of bank column. Therefore, Rs. 90 is entered in excess in the credit side (Rs. 1,540 Rs. 1,450). So, Rs. 90 would be entered in the debit side to rectify the mistake made or make amendments.