Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?
ABank charges will be added to cash book balance
BBank charges will be credited in cash book
CBank charges will be debited in cash book
DBank charges need no adjustment in cash book
Correct answer
B. Bank charges will be credited in cash book
Explanation
Bank charges will be credited in cash book is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.