Question

5. Harshad, an employee of Malhotra Electronics, deposited in the bank * 60,000 as the previous day's
sale held overnight in the firm's safe. He has recorded the transaction in the cash book as follows:
In the bank column Payments side; and in cash column on Receipts side. Has he passed the entry
correctly?​

Answer 1

Answer:

NO

This type of ENTRY comes under CONTRA ENTRY.

Bank A/c Dr 60000

To Cash A/c 60000

Correct Recording Should be

Receipt side : BANK column

Payment side : CASH column

Thank You I hope it will be Helpful.