Multiple choice

The furniture is purchased for personal use of Rs. 2,000 and the payment is made through cheque. It is entered in the credit side of bank column. How to rectify this error made in the Two - Columnar Cash Book?

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

  2. No rectification is required.

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

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is correct that no rectification is required.

The payment of furniture is made through cheque and hence the bank balance is decreased by Rs. 2,000. That by which the balance is decreased is entered in credit side of bank column. Hence, no rectification is required. It is immaterial that the furniture is purchased for personal or business use.

Keep practicing — related questions