Question

The receipt side of Cash Book ( Bank Column) was over cast by Rs. 112. When the balance as per Cash Book is starting point _________ .

• A. Rs. 112 to be added
• B. Rs. 112 to be subtracted
• C. No adjustment in required
• D. None of these

Answer 1

Answer: (B)

Rs. 112 to be subtracted

Receipt side of cash book overcast means bank balance in cash book is showing more balance than pass book. Balance in pass book is Rs.112 less than cash book balance. To match the balance cash book will be subtracted by Rs. 112.