HOW DO WE RECORD '9.'(Balance brought forward should have been 639)?
Hi Simran
Entry (9) states that 'Balance b/d should have been Rs 639 instead of Rs 6,849'
That means, Rs 6,210 (6849 - 639) excess appears on the credit side. Right?
So, in order to nullify the extra credit effect, we will debit Rs 6,210 in the Cash Book like this:
Hope this clarifies your doubt!
Entry (9) states that 'Balance b/d should have been Rs 639 instead of Rs 6,849'
That means, Rs 6,210 (6849 - 639) excess appears on the credit side. Right?
So, in order to nullify the extra credit effect, we will debit Rs 6,210 in the Cash Book like this:
| Amended Cash Book | |||||||||
| Dr. | RECEIPTS | PAYMENTS | Cr. | ||||||
| Date | Particulars | L.F. | Bank (Rs) |
Date | Particulars | L.F. | Bank (Rs) |
||
| (9) | Wrong balance brought forward | 6,210 | Balance b/d | 6,849 | |||||
Hope this clarifies your doubt!