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 Mr. X, bank balance as per cash book will be __________.

• A. Short by $Rs.5000$
• B. More by $Rs.5000$
• C. Short by $Rs.550$
• D. More by $Rs.550$

Answer 1

The correct option is A Short by $Rs.5000$

The cheque was wrongly credited in Mrs X a/c as Rs. 550. This implies that the amount of Rs. 5000 was not added to Mr X's Bank account. Thus, his account will show a short balance by Rs. 5000. However, while reconciling the bank balance of Mr X, we won't consider the wrong credit to Mrs X's a/c.

Thus, the correct answer is short by Rs. 5000.