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sir as i asked earlier in a thread 125 which is the standing order is entered twice..to remove this we will have to debit it..but sir on CR side there will be one left (125) ..okay let me write the question.. i have rewatched your videos but my confusion isnt clearning up..
The cash book shows a bank balance of $ 5675 overdrawn at 31 March 2005. It is subsequently discovered that a standing order for $125 had been entered twice and that a dishonoured cheque for $450 had been debited in the cashbook instead of credited..
I made a ledger where i shall put 5675 on Cr side then 125 is 2 times..to cancel it i will put one on debit side..then comes 2 times 450 to cancel the dishonoured cheque. i dont get the 125 part that why arent we having 125 on CR side too?The correct entry for the standing order was to have one credit in cash of 125.
They have entered it twice – so they will have two credits in cash of 125 instead of just one credit.
Therefore to remove the extra credit that should not have been there, we need to debit cash with 125.
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