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Standard XI

Accountancy

Interest and Dividends Collected by Bank

The bank has ...

Question

The bank has collected a dividend of Rs.500 & also debited Rs.100 in passbook. An amount of shall be to the balance of cash book for reconciling.

Rs.600

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Rs.400

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added

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deducted

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Solution

The correct options are
B Rs.400
C added
The bank has credited an amount of Rs.500 towards dividend and debited Rs.100 as bank charges. So the balance as per bank statement is increased by Rs.400(500-100). So the same amount of Rs.400 is added to the balance of cash book to reconcile the same with the balance as per pass book.

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Similar questions

Q. The bank has collected an interest of Rs. 600 and has credited in the passbook. To reconcile, the amount of Rs. will be to the balance of cash book.

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(4) A cheque of Rs.600 debited in cash book omitted to be banked.

Q. Bank column of cash book showed bank balance of

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