Question

Briefly explain the statement 'wrongly debited by the bank' with the help of an example.

Answer 1

When a firm issued a cheque of Rs. 1,500 to any of its creditor and it is presented for payment and paid by the bank but in place of Rs. 1,500, bank debited it wrongly by Rs. 15,000. The above error may be opposite too but in every situation, the balance of cash book and pass book will not tally. The term will be used for it will be wrongly debited by the bank. It generally happens at the time of posting the transaction.