Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.
A$1000 will be subtracted
BNon-adjustable
C$500 will be debited
D$500 will be credited
Correct answer
D. $500 will be credited
Explanation
$500 will be credited is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.