CA CPT Exam > CA CPT Questions > A purchase of Rs. 1,870 by cheques has been w...
Start Learning for Free
A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect of
- a)Increasing the bank balance by Rs.90
- b)Decreasing the bank balance by Rs.90
- c)Increasing the bank balance by Rs.180
- d)Decreasing the bank balance by Rs.180
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A purchase of Rs. 1,870 by cheques has been wrongly posted in the cash...
Effect of Wrong Posting on Bank Balance
When a purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780, it will have an effect on the bank balance. The correct amount of Rs. 1,870 has been paid through a cheque, but the cashbook shows only Rs. 1,780. This means that there is a difference of Rs. 90 in the cashbook.
The effect of this error on the bank balance depends on whether it was an overdraft or a deposit.
If it was an overdraft, the bank balance would decrease by Rs. 90. This is because the bank has paid out more money than what was available in the account.
If it was a deposit, the bank balance would increase by Rs. 90. This is because the bank has received more money than what was recorded in the cashbook.
In this case, since it is a purchase by cheques, it is most likely that the bank balance would increase by Rs. 90. This is because the cheque would have been deposited in the bank, and the bank would have credited the amount of Rs. 1,870 to the account. However, since the cashbook shows only Rs. 1,780, the bank balance would show a difference of Rs. 90.
Therefore, the correct answer is option 'A' - Increasing the bank balance by Rs. 90.
When a purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780, it will have an effect on the bank balance. The correct amount of Rs. 1,870 has been paid through a cheque, but the cashbook shows only Rs. 1,780. This means that there is a difference of Rs. 90 in the cashbook.
The effect of this error on the bank balance depends on whether it was an overdraft or a deposit.
If it was an overdraft, the bank balance would decrease by Rs. 90. This is because the bank has paid out more money than what was available in the account.
If it was a deposit, the bank balance would increase by Rs. 90. This is because the bank has received more money than what was recorded in the cashbook.
In this case, since it is a purchase by cheques, it is most likely that the bank balance would increase by Rs. 90. This is because the cheque would have been deposited in the bank, and the bank would have credited the amount of Rs. 1,870 to the account. However, since the cashbook shows only Rs. 1,780, the bank balance would show a difference of Rs. 90.
Therefore, the correct answer is option 'A' - Increasing the bank balance by Rs. 90.
Free Test
FREE
| Start Free Test |
Community Answer
A purchase of Rs. 1,870 by cheques has been wrongly posted in the cash...
1870-1780=90
Journal entry to rectify
Purchase a/c dr. 90
To Bank a/c. 90
Journal entry to rectify
Purchase a/c dr. 90
To Bank a/c. 90
Attention CA CPT Students!
To make sure you are not studying endlessly, EduRev has designed CA CPT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA CPT.
|
Explore Courses for CA CPT exam
|
|
Similar CA CPT Doubts
Top Courses for CA CPTView all
A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer?
Question Description
A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer?.
A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer?.
Solutions for A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
Download more important topics, notes, lectures and mock test series for CA CPT Exam by signing up for free.
Here you can find the meaning of A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect ofa)Increasing the bank balance by Rs.90b)Decreasing the bank balance by Rs.90c)Increasing the bank balance by Rs.180d)Decreasing the bank balance by Rs.180Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA CPT tests.
|
|
Explore Courses for CA CPT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup