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Direct Payments Made by Bank

If starting p...

Question

If starting point is cash book balance, deductions in bank pass book not given to effect in cash book are ___ while preparing BRS.

A

Added

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B

Subtracted

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C

Not required to be adjusted

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D

None of the above

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Solution

The correct option is B
Subtracted

Direct deductions by bankers are always subtracted in cash book because such transactions are not appearing in cash book but they are present in the bank statement.

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