Question

The bank charges of Rs 100 were recorded twice in cash book. What will be the impact in BRS, if it starts with overdraft balance in pass book.

• A. Overdraft balance will decrease by Rs 100
• B. Overdraft balance will increase by Rs 200
• C. Overdraft balance will increase by Rs 100
• D. Overdraft balance will decrease by Rs 1000

Answer 1

The correct option is C

Overdraft balance will increase by Rs 100

Amount has been twice deducted in cash book & hence it shall be once more deducted in bank pass book. However it starts with overdraft balance, it will be increased.