Multiple choice

The bank has collected Rs. 1,640 as dividend on our behalf, but we have entered Rs. 1,460 in the debit side of bank column of Two - Columnar Cash Book. How to rectify this mistake in the Two - Columnar Cash Book?

  1. Rs.180 is entered in the credit side of bank column.

  2. Rs. 180 is entered in the debit side of cash column.

  3. Rs. 1,640 is entered in the debit side of bank column.

  4. Rs.180 is entered in the debit side of bank column.

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is correct. The bank has collected dividend of Rs. 1,640 on our behalf, which is going to enhance our cash balance in the bank by Rs. 1,640. But we have entered only Rs. 1,460 in the debit side of bank column. Further, Rs. 180 is entered in the debit side of bank column (Rs. 1,640 - Rs. 1,460).