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Standard XI

Accountancy

Cheques Issued but Not Presented

Ram had borro...

Question

Ram had borrowed a loan of Rs 1,00,000 from his friend to whom he used to repay Rs 20,000 on the 10th of each month & simultaneously he used to put this entry into the cash book of his firm. His friend was out of country in the month of August & he forgot to put the cheque into his bank. Which of the following shall be true?

Cash book will show a balance more by Rs 20,000

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Bank book will show a balance more by Rs 20,000

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Cash book will show a balance less by Rs 20,000

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Both B & C

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Solution

The correct option is D
Both B & C

Cash book will show a less balance by Rs 20,000 & bank pass book shall show a more balance by Rs 20,000.

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The correct option is D Both B & C Cash book will show a less balance by Rs 20,000 & bank pass book shall show a more balance by Rs 20,000.

The correct option is D
Both B & C

Cash book will show a less balance by Rs 20,000 & bank pass book shall show a more balance by Rs 20,000.