Question

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?

• A. Not enter the direct debit as it only affects the bank statement
• B. Debit the bank statement and credit the rent account
• C. Debit the rent account and credit the cash book
• D. Debit the cash book and credit the rent income account

Answer 1

Answer: (D)

Debit the cash book and credit the rent income account

Since rent received is not recorded, Cash is increased by debiting it and crediting rent account as it is an income.