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 bank pass 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 $Rs.5000$

When a cheque in favour of a person is credited by bank it leads to the increase in the account holder's bank balance. Now, here a cheque in favour of Mr. X of $Rs.5000$ was wrongly credited to Mrs. X a/c as $Rs.550$. This would lead to the bank balance as per pass book of Mr. X to be short by $Rs.5000$ and the bank balance as per pass book of Mrs. X to be more by $Rs.550$ .