Question

The payment side of the cash book is undercast by Rs.200. When overdraft as per pass book is the starting point, to get the overdraft as per cash book ___________.

• A. Rs. 200 will be deducted
• B. Rs. 200 will be added
• C. Rs. 400 will be added
• D. Rs. 400 will be deducted

Answer 1

The correct option is A Rs. 200 will be deducted

If the starting point is pass book with a debit balance i.e. overdraft, item which makes cash book balance larger than the pass book balance need to be deducted.