Question

A bill of rs 700 by a bank under rebate of rs 20 and full amount credited in the cashbook what is the entry in brs as per the passbook

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.