State whether the following statement is True or False.
Bank charges debited by Bank increase bank balance in the Pass Book.

True

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False

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Solution

The correct option is B False
False. Bank charges debited by the bank in the pass book reduces the balance in the pass book as compared to cash book. This is because the business has not yet recorded this transaction. This difference arises only because of the difference in recording of the transaction.

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Similar questions

State whether the following Statements are True or False.

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State whether the following statement is True or False.Bank charges debited by Bank increase bank balance in the Pass Book.

State whether the following statement is True or False.
Bank charges debited by Bank increase bank balance in the Pass Book.