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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
ignored
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Solution

The correct option is B subtracted
Wrong debit means bank has deducted the amount from the bank balance. therefore the bank balance as per pass book will be lesser than the balance as per cash book. So the amount is deducted from the favourable balance of cash book.

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