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
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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.
Correct answer
B. General journal
Explanation
General journal is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Preparing financial statements
Explanation
Preparing financial statements is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Return inward
Explanation
Return inwards refer to the goods returned to an organization by its customers. They are goods which were sold, but usually, because of being unsatisfactory, were returned back by the customers. They are also called the Sales returns .
Correct answer
C. Recording
Explanation
Recording is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner
Explanation
Error of Commission arises because of wrong recording, wrong casting, wrong carry forward, wrong posting, wrong balancing etc.
Correct answer
B. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
Explanation
The entry will be as follows: Reserve for Discount on Creditors A/c……………………………………………… Dr. To Profit & Loss A/c It will be shown on the credit side as a separate item and will be shown on the Liabilities side by way of deduction from the Sundry Creditors.
Correct answer
C. Ledger accounts
Explanation
Ledger accounts is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. distribution cost.
Explanation
distribution cost. is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. All the three
Explanation
All the three is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.