Question

One outgoing cheque of Rs. 112 sent to a creditor but omitted to be recorded in the Cash Book. ( Note: This cheque was presented in the Bank ). When the balance as per Cash Book is the starting point __________ .

• A. Rs. 112 to be added to cash book
• B. Rs. 112 to be subtracted from cash book
• C. No adjustment is required
• D. None of these

Answer 1

Answer: (B)

Rs. 112 to be subtracted from cash book

This is an error of omission. In the given question a cheque of rupees 112 has been omitted to be entered. When balance as per cash book is the starting point the adjustments are to be made in the cash book hence Rs 112 is to be subtracted from the balance of cash book.