Question

An amount of $Rs.2,500$ is debited twice in the bank column of cash book. When credit balance as per pass book is the starting point which one of these adjustments would be done at the time of reconciliation?

• A. Add $Rs.2,500$ to balance as per pass book
• B. Deduct $Rs.2,500$ to balance as per pass book
• C. Add $Rs.5,000$ to balance as per pass book
• D. Deduct $Rs.5,000$ to balance as per pass book

Answer 1

The correct option is A Add $Rs.2,500$ to balance as per pass book

When an amount is debited twice in the bank column of the cash book the pass book balance would be showing a lower balance so, in order to reconcile we would have to add the amount to the pass book balance.

Example:

Credit Balance as per passbook ........................................................... $Rs.5000$

Add : Cheque received debited twice in cash book ........................$Rs.2500$

Debit balance as per bank column of cash book ..............................$Rs.7500$