$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.
Correct answer: A. $5000 will be credited
- A. $5000 will be credited
- B. $5000 will be debited
- C. $10,000 will be credited
- D. $10,000 will be debited
Explanation
The deposit has increased the bank column twice, so the duplicate $5,000 debit must be reversed by crediting $5,000 in the cash book.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
An entry which is made on both sides of a cash book is called__________?
Cash book records:______________?
Cash book is prepared by____________?
A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book
Favorable balance of bank statement implies that
_________ Checks that are presented to bank but not yet credited by the bank.