Multiple choice

The interest of Rs. 500 is charged by bank, but is entered in the credit side of cash column. How to rectify this error in the Two - Columnar Cash Book?

  1. Rs. 500 is to be entered in debit side of cash column only.

  2. Rs. 500 is to be entered in the debit side of cash column and Rs. 500 is to be entered in the credit side of bank column.

  3. Rs. 500 is to be entered in the credit side of bank column only.

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

This is correct.

Interest of Rs. 500 is to be entered in the credit side of bank column. But it is entered in the credit side of cash column. Hence, Rs. 500 is to be entered in its debit side to nullify it. Rs. 500, which is not entered in the credit side of bank column before would be entered in its credit side now.

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