MCQ Practice

A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

Subject: AccountingTopic: Accounting
A

$1000 will be added to cash book balance

B

$2000 will be deducted from cash book balance

C

$3000 will be added to cash book balance

D

$3000 will be subtracted from cash book balance

Correct Answer: D