cash bokk

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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April 23, 2016 at 9:13 am #312319
adli82
Member
- Topics: 5
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sandilans co uses a computer to maintain its accounting records. A printout of its cash book for the month of may 20X3 was extracted on 31 May and the summarised below
balance b/d 546 Dr payment 5966 Cr
Receipt 6293 DR balance c/d 6839
a) A cheque drawn by Sandilands co for $693 and presented to the bank on 26 may has been incorrectly entered in cash book as $936
after correction :
cash book a/c
Error($936-693) 243 DR
my question why on Dr side instead of CR side as sandiland drawn a cheque
just need explanation
April 23, 2016 at 12:14 pm #312344
John Moffat
Keymaster
- Topics: 57
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Sandilands has credited with 936, but they should only have credited with 693.
So they have credited with 243 too much.
So to remove this 243 too much credit, we need to debit with 243.
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