Question

Cash receipt of $Rs.5100$ was wrongly posted to credit side 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 C less by $Rs.510$

Cash receipt is to entered on the debit side of the cash column in 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 on the credit side of the bank column in the cash book as $Rs.510$. Any entry on the credit side of the bank column in the cash book indicates payment through bank balance, so the error occurred here would lead to the bank balance as per cash book being less by $Rs.510$ .