An employee of a music store went to a bank and lodged the previous night’s takings, held overnight in the firm’s safe.
This transaction should be recorded in the store’s Cash Book as……?
Select ONE answer:
Column to Debit Column to Credit
- Cash Bank
- Bank Cash
- Cash Cash
- Bank Bank
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct – Lodging cash on hand increases the bank balance (thus requiring a debit entry to increase the asset of bank) and reduces the cash balance (thus requiring a credit entry to decrease the asset of cash).
- Not correct
- Not correct
This work is licensed under a Creative Commons Attribution 4.0 International License.