Multiple choice

Directions: Choose the correct option for the given question.

Cheque deposited in personal account was entered in business account and dishonour entry was also passed in same account. This will create

  1. less balance in pass book

  2. less balance in cash book

  3. no difference

  4. none of these

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

If the entry was made in the business account and the dishonor was also recorded in the same account, the errors effectively cancel each other out, resulting in no net difference.