A company recorded its August 15 receipts on its books as $165. However, the receipts were actually $156.

Well The company added $165 to its accounting records when it should have added only $156. In other words it added $9 access in Cash balance. As a result the company must subtract $9 from its Cash balance.

From accounting point of view

Dr Sales $10

Cr Cash $10

Note: Your trial balance will not be balance if entires are not recorded properly

 

From Internal Control Point of View

there are lack of internal controls which caused such issue as sales is not being properly recorded, if sales is overstated by $10 and actual receipt are less tby $10 it means some suspicious activities are going on to overstate the sales receipt other account such as purchases may have the same error as well. 

Note: A proper accounting software need to be used by accountant to quickly analysis the difference and recording 

 

From Audit point of view

there can be fraudulent activities going on to prevent the fraud by overstating the sales receipt by $10

Note: Internal audit procedure should be conducted to analysis the accounts, physical documents as well external documents and proper entries of accounts.

The error will be discovered once bank reconciliation is prepared. For such error, there should be a adjusting entry, a deduction (credit entry) in cash account and a debit entry to sales.

Dr,suspense account $9 Cr cash $9

Thank you for your kindness invitation anil bay.

I agree with all previous answers.

Regards