Multiple choice

The machinery is purchased for Rs. 30,000 and the payment is made through cheque, but is entered in credit side of cash column. How to rectify this error in the Cash Book?

  1. Rs. 30,000 is entered in the debit side of bank column only.

  2. Rs. 30,000 is entered in the debit side of cash column and Rs. 30,000 is entered in the credit side of bank column.

  3. Rs. 30,000 is entered in the credit side of bank column only.

  4. No rectification is required as the entry made is correct.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is correct. The payment of machinery is made through cheque. Hence, Rs. 30,000 is to be entered in the credit side of bank column, but we have entered it in the credit side of cash column. So, Rs. 30,000 would be entered in the debit side of Cash Column to nullify the amount of Rs. 30,000. Rs 30,000, which is not entered before in the credit side of bank column, would be entered in its credit side now.

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