Question

a bill for 700 retired by bank under rebate of 20 the full amount was credited in the cash book

Answer 1

When we pay the bills before the due date then we get some rebate or discount.

So, we need to pay less amount.

So here in the cash book, if the payable billing amount is 700 Rs., it must be credited with 680 Rs. because 20 Rs. was off.

Therefore 20 Rs. will be added to the cash book later and the mistake done will be rectified.