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Realisation of Assets (Dissolution)

When the over...

Question

When the overdraft as per cash book is the starting point, a cheque for Rs 500 deposited into bank but not recorded in cash book will be _________.

added by Rs 500

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deducted by Rs 500

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added by Rs 1,000

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deducted by Rs 2,000

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Solution

The correct option is B deducted by Rs 500
Cheque deposited but not recorded in cash book will increase the balance in the passbook. So, while preparing bank reconciliation statement and taking overdraft balance as per cash book as the starting point, a cheque for Rs. 500 deposited into bank but not recorded in the cash book will be deducted from the overdraft cash book balance to arrive at the increased passbook balance in order to reconcile the two balances.

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Similar questions

Prepare a Bank Reconciliation Statement on 31st December 2009 for the following when overdraft as per pass book is Rs.20,000.

(1) Cheques issued,but not presented for payment Rs.25,000.

(2) Interest on bank overdraft charged by the bank,but not entered in cash book Rs.1,000.

(3) Cheque deposited but not collected Rs.22,000.

(4) Insurance premium Rs.500 paid by bank under standing order but not recorded in cash book.

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Overdraft shown by the pass book of Mr Murli is Rs. 20,000. Prepare bank reconciliation statement on dated December 31, 2010.

(i) Bank charges debited as per pass book, Rs. 500,

(ii) Cheques recorded in the cash book but not sent to the bank for collection, Rs. 2,500.

(iii) Received a payment directly from a customer, Rs. 4,600.

(iv) Cheque issued but not presented for payment, Rs. 6,980.

(v) Interest credited by the bank, Rs. 100.

(vi) LIC paid by the bank, Rs. 2,500.

(vii) Cheques deposited with the bank but not collected, Rs. 3,500.

Prepare a Bank Reconciliation Statement on 31 March 2004 for the following when debit balance of pass book is Rs.2,500:

(1) Cheques issued, but not presented for payment Rs.2,000.

(2) Cheques issued, but omitted to be record in Cash Book Rs.1,000.

(3) Cheque deposited but not collected Rs.500.

(4) A discounted bill of exchange dishonoured Rs.1,000.

(5) Interest on overdraft Rs.100.

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