A loan ledger shows an outstanding principal of ₹90,000, while the acc

Type: MCQ • Marks: 1

A loan ledger shows an outstanding principal of ₹90,000, while the accounting system shows ₹95,000 Before calculating interest, the office should:

A. Use whichever figure is larger

B. Reconcile the discrepancy and establish the correct balance

C. Ignore the difference

D. Calculate interest on both and charge the borrower twice

Explanation

Interest calculated on an incorrect principal produces an incorrect financial claim.

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UPSC Principal & Vice Principal Management Finance Administration

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A loan ledger shows an outstanding principal of ₹90,000, while the accounting system shows ₹95,000 Before calculating in...