While checking the bank statement against the cash book, you find that a direct debit for rent is missing from the cash book.

Not enter the direct debit as it only affects the bank statement.

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Debit the rent account and credit the bank account.

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Debit the bank account and credit the rates account.

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Debit the rent account and credit the bank statement

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Solution

The correct option is B
Debit the rent account and credit the bank account.

Direct debit of rent is missing in cash book & hence it has to be reduced i.e. Bank column in cash book has to be credited & rent expenditure has to debited.

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Similar questions

While checking the bank statement against the cash book, you find that a direct debit for rent received from a tenant is missing from the cash book. How this is adjusted in the books?

On checking Ram’s Cash Book with the Bank statement of his overdraft current account for the month of November, 2012, you find the following:

(i) Cash Book showed an overdraft of Rs 45,000.
(ii) The payment side of the Cash Book had been under cast by Rs 1,500.
(iii) A cheque for Rs 7,500 drawn on his saving account has been shown as drawn on his current account.
(iv) Cheques amounting to Rs 70,000 drawn and entered in the Cash Book had not yet been presented.
(v) Cheques amounting to Rs 60,000 sent to the bank for collection,though entered in the Cash Book,had not been credited by the bank.
(vi) Bank charges of Rs 750 as per Bank Statement had not been taken into the Cash Book.
(vii) Dividends of Rs 25,000 had been paid direct into the bank and not entered in the Cash Book. You are required to prepare a Bank Reconciliation Statement on 30th November, 2012.

Enter the following transactions in cash book.

$\begin{matrix} 2013 & Rs Jan.01 & Cash in hand & 1, 500 Jan.05 & Paid to Ram & 300 Jan.05 & Discount allowed by him & 10 Jan.08 & Purchased goods & 400 Jan.10 & Received from R. Gupta & 980 Jan.10 & Discount allowed & 20 Jan.16 & Sold goods & 400 Jan.21 & Paid to S. Sharma & 295 Jan.21 & Discount received & 5 Jan.25 & Paid wages & 50 Jan.31 & Paid to Narayan in full settlement of his account which shows a credit balance Rs 400 & 390 \end{matrix}$

Q. On Checking Ram's Cash Book with the bank statement of his overdraft current account for the month of November 2014, you find the following:
(a) Cash Book showed an overdraft of ₹ 16,200.
(b) The payment side of the Cash Book had been undercast by ₹ 500.
(c) A cheque for ₹ 13,600 drawn on his saving deposit account has been wrongly recorded as drawn on current account in the Cash Book.
(d) Cheques amounting to ₹ 18,800 drawn and entered in the Cash Book had not been presented.
(e) Cheques amounting to ₹ 7,500 sent to the bank for collection though entered in the Cash Book, had not been credited by the bank.
(f) Bank charge of ₹ 150 as per bank statement of account had not been taken in the Cash Book.
(g) Dividend of the amount of ₹ 420 had been paid direct to the bank and not entered in the Cash Book.
You are requested to arrive at the balance as it would appear in the bank statement as on 30th November 2014.

Under Bank reconciliation statement, while adjusting the cash book:

Q. On 31st March, 2015 the Cash Book of Gopal disclosed a balance of ₹ 12,580. On checking entries in the Cash Book with the bank statement, it was ascertained that:
(i) Cheques amounting to ₹ 18,000 were drawn on 25th March, of which cheques of ₹ 4,800 were cashed before 31st March.
(ii) Out of cheques received and entered in the bank column of the Cash Book for ₹ 18,000; ₹ 16,000 sent to bank but Pass Book recorded ₹ 6,200 after the date.
(iii) An amount of ₹ 5,000 paid directly into the merchant's account by a customer was not entered in the Cash Book.
(iv) The bank erroneously debited Gopal's Account for a cheque of ₹ 1,700.
(v) On 31st March, cash was deposited into the bank ₹ 12,720 but the cashier debited the bank account with ₹ 12,270 by mistake.
(vi) Dividend collected by bank on our behalf ₹ 570 does not appear in the Cash Book.
(viii) ₹ 300 is entered in the bank statement as bank charges. This was recorded as ₹ 200 in the cash book.
You are required:
(i) to prepare the Amended Cash Book, and
(ii) then prepare a Bank Reconciliation Statement.

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While checking the bank statement against the cash book, you find that a direct debit for rent is missing from the cash book.

The correct option is B Debit the rent account and credit the bank account. Direct debit of rent is missing in cash book & hence it has to be reduced i.e. Bank column in cash book has to be credited & rent expenditure has to debited.

The correct option is B
Debit the rent account and credit the bank account.

Direct debit of rent is missing in cash book & hence it has to be reduced i.e. Bank column in cash book has to be credited & rent expenditure has to debited.