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Errors Committed in Recording Transactions

When favourab...

Question

When favourable balance as per cash book is the starting point, wrong debit by the bank to the firm will be:

A

Added

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B

Subtracted

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C

Both

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D

None

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Solution

The correct option is B
Subtracted

Wrong debit means bank account has been deducted & hence it shall also be deducted in cash book.

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Similar questions

Q. Favourable bank balance as per the cash book will be less than the bank pass book balance when there are unpresented cheques for payment.

Q. Bank collected dividend of Rs.

25, 000

on behalf of customer which was not recorded in cash book.
In respect of the above given transaction which of the following treatment is correct for preparation of bank reconciliation statement?
(I) If BRS is prepared without adjusting cash book and the balance as per cash book is starting point then Rs.

25, 000

will be subtracted.
(II) If BRS is prepared with adjusted cash book then Rs.

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(III) If BRS is prepared without adjusting cash book and the balance as per cash book is starting point then Rs.

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will be added.
(IV) If BRS is prepared with adjusted cash book the Rs.

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will be credited to the adjusted cash book.

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Q. When balance as per Cash Book is the starting point, interest charged by Bank is ____________.

Q. When balance as per Cash Book is the starting point which of the following is subtracted ________________.

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Errors Committed in Recording Transactions

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