Question

A cheque of $Rs.5000$ in favour of Mr. X was wrongly credited by the bank in Mrs. X a/c as $Rs.550$. While reconciling the bank balance of Mrs. X, bank balance as per cash book will be _________.

• A. short by $Rs.5000$
• B. more by $Rs.5050$
• C. short by $Rs.550$
• D. more by $Rs.5000$

Answer 1

The correct option is C short by $Rs.550$

When a cheque in favour of the account holder is credited in his bank account, it would increase his bank balance. Here a cheque of Mr. X of $Rs.5000$ was wrongly credited by bank in Mrs. X a/c as $Rs.550$. So now the bank balance as per cash book of Mr. X would be more by $Rs.5000$ and the bank balance as per cash book of Mrs. X would be short by $Rs.550$.