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Bank Reconciliation Statement and Cash Book
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The outgoing cheque of Rs. 3,000 is recorded twice in the credit side of bank column of Two-Columnar Cash Book. How will you make amendments in the cash book for this error?
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A
Rs. 3,000 is to be entered in the debit side of bank column.
💡 Explanation:
It is correct that Rs. 3,000 is to be entered in the debit side of bank column.
The outgoing cheque is recorded two times or twice in the credit side of bank column of Rs. 3,000. Hence, in the credit side of bank column, double of Rs. 3,000, i.e. Rs. 6,000 are entered. Therefore, to rectify this error, Rs. 3,000 will be entered in the debit side of the bank column. The net effect of this will be that Rs. 3,000 will be in the credit side of bank column (Rs. 6,000 in credit side - Rs. 3,000 in debit side = Rs. 3,000 ).