Effect of Recording One Outgoing Cheque Twice in Cash Book

When one outgoing cheque of 500rs is recorded twice in the cash book, it leads to an error in the cash book balance. This error can either result in an addition or a deduction in the cash book balance depending on how the double recording is done.

Case 1: Double Recording as Debit

If the cheque is recorded twice in the cash book as a debit entry, it will result in an addition to the cash book balance. This is because the cash book will show that cash has been received twice for the same cheque, which means that there is more cash available than what is actually there.

Case 2: Double Recording as Credit

If the cheque is recorded twice in the cash book as a credit entry, it will result in a deduction from the cash book balance. This is because the cash book will show that cash has been paid twice for the same cheque, which means that there is less cash available than what is actually there.

Rectifying the Error

To rectify the error of double recording, the entry needs to be reversed in the cash book. If the cheque was recorded twice as a debit entry, one of the entries needs to be reversed as a credit entry. If the cheque was recorded twice as a credit entry, one of the entries needs to be reversed as a debit entry.

Conclusion

In conclusion, recording one outgoing cheque twice in the cash book can result in an error in the cash book balance, which can either be an addition or a deduction. To rectify the error, the double entry needs to be reversed in the cash book. It is important to ensure accuracy in the cash book to avoid such errors and maintain correct financial records.

Cheque is recorded twice means it is credited twice in cash book so we will have to debit it once in BRS as the starting point is debit balance as per cash book it will be added.