Debit & Credit for Buying Assets & Additional Capital
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
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.