308
Question
When balance as per cash book is the starting point, cheques deposited but dishonoured are ____________ .
When balance as per cash book is the starting point, cheques deposited but dishonoured are ____________ .
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Solution
The correct option is A Subtracted
When cheque is deposited in the bank, the account holder would debit his bank column of the cash book to increase the bank balance, but when the same cheque gets dishonoured his cash book would show higher balance than his pass book.So, while reconciling the bank balances if balance as per cash book is the starting point, cheques deposited but dishonoured are subtracted.
When cheque is deposited in the bank, the account holder would debit his bank column of the cash book to increase the bank balance, but when the same cheque gets dishonoured his cash book would show higher balance than his pass book.
So, while reconciling the bank balances if balance as per cash book is the starting point, cheques deposited but dishonoured are subtracted.
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