Question

Cash receipt of $Rs.5100$ was wrongly posted to bank column of cash book as $Rs.510$. Bank balance as per cash book will be ________.

• A. more by $Rs.510$
• B. more by $Rs.5100$
• C. less by $Rs.510$
• D. $Rs.5100$

Answer 1

The correct option is A more by $Rs.510$

Cash receipt is to entered in the cash column of the cash book and no entry of this would be shown in the pass book as the bank balance is not affected due to this transaction. But, here cash receipt of $Rs.5100$ was wrongly posted in bank column of the cash book as $Rs.510$ which would result in cash book showing a bank balance more by $Rs.510$ .