The bill of Rs. 2,000 received from our customer was dishonoured on due date. The bill was discounted by us before and Rs. 100 was noting charge. On the dishonour of bill, the entry was made in the credit side of bank column as Rs. 2,000. How will we make amendments in our cash book to rectify this mistake?

This is correct. When the bill is dishonoured on due date, which was discounted before the payment of the bill due is to be made to bank along with noting charge. The amount of bill is of Rs. 2,000 and noting charge is of Rs. 100. Hence, total is (Rs. 2,000 + Rs. 100 = Rs. 2,100). So, Rs. 2,100 is to be entered in credit side of bank column, but we have entered only Rs. 2,000. Thus, further Rs. 100 is to be entered in credit side of bank column (Rs. 2,100 - Rs. 2,000 = Rs.100 )