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Question

When debit balance as per cash book is the starting point, direct deposits by customers are __________ .

A
added
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B
subtracted
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C
not required to be adjusted
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D
none of these
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Solution

The correct option is A added
In case of direct deposits by customers the entry for the same would have been entered in the pass book due to which the cash book balance would be less than the pass book balance.
So, when debit balance as per cash book is the starting point, direct deposits by customers are added to reach pass book balance.

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