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Question

The cash book of N Ltd. showed debit balance of Rs.6,000. A comparison of pass book and cash book revealed the following
-Cheques amounting of Rs.250 has been dishonoured but not recorded in cash book.
-Total of credit side bank column in cash book was under cast by Rs.475
Balance as per pass book will be ________.

A
Rs.6,225
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B
Rs.5,775
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C
Rs.6,725
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D
Rs.5,275
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Solution

The correct option is D Rs.5,275
Particulars + -
Balance as per cash book (Dr.) 6,000
Cheque dishonoured but not entered in cash book 250
Amount by which cash book is undercast 475
Balance as per pass book 5,275

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