Which of the following needs to be debited in cash book, when they are reflected in pass book?

Bank charges

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Interest debited

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Interest credited

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Clearing and processing charges

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Solution

The correct option is C
Interest credited

Interest credited by bank into the pass book increases the bank balance and therefore needs to be debited in cash book.

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Following are the entries recorded in the Cash Book (Book Column) of Deepali Traders for the month ended 31st March, 2011.

Cash Book (Bank Column Only)
Dr.			Cr.
Date	Receipts	Rs	Date	Payments	Rs
2011 Mar. 15 21 22 31	To Cash A/c To Razak’s A/c To Kavita’s A/c To Balance c/d	36,000 24,000 10,000 7,640	2011 Mar.1 4 6 15 20	By Balance b/d By Jonny’s A/c By Roma’s A/c By Ashish ‘s A/c By Patil’s A/c	40,000 2,000 400 240 35,000
		77,640			77,640

On 31^st March 2011, Deepali Trader’s received the Bank Statement, on comparing it with the Cash Book following information was available.
(i) Cheque of Rs 10,000 deposited into the Bank not Credited by Bank.
(ii) Bank charges debited by Bank not entered in the Cash Book Rs 340.
(iii) Interest on Ovendraft debited Rs 1,000 by Bank but not recorded in the Cash Book
(iv) Bank transferred and credited Rs 200 in the Pass Book, not recorded in the Cash Book
(v) Cheques issued but not presented to the Bank Rs 37,400
(vi) Interest on Securities Rs 1,080 and Dividend on shares Rs 1,000 collected and Credited by Bank, not entered in the Cash Book.

Q. Prepare bank reconciliation statement.
i) Overdraft shown as per cash book on December 31, 2010 Rs. 10,000.
ii) Bank charges for the above period also debited in the pass book Rs. 100.
iii) Interest on overdraft for six months ending December 31, 2010, Rs. 380 debited in the pass book.
iv) issued but not incashed prior to December 31, 2010 amounted to Rs. 2,150.
v) Interest on Investment collected by the bank and credited in the pass book, Rs. 600.
vi) Cheques paid into bank but not cleared before December, 31 2010 were Rs. 1,100.

State whether the following Statements are True or False.

1) Bank Reconciliation Statement is prepared by Bank.
2) Bank Reconciliation Statement is prepared at the end of stipulated period.
3) Overdraft facility is allowed to proprietors personal account
4) Debit balance of Pass Book represents overdraft
5) Credit balance of Bank column of Cash Book represents the balance as per Cash book.
6) Bank charges debited by Bank increases bank balance in the Pass Book.
7) Interest credited in Pass Book is an income to the Customer.
8) Bank Reconciliation Statement is prepared to detect the errors the takes place in accounting

Q. From the following particulars, you are required to ascertain the bank balance as would appear in the Cash Book of Ramesh as on 31st October, 2018:
(i) Bank Pass Book showed an overdraft of ₹ 16,500 on 31st October.
(ii) Interest of ₹ 1,250 on overdraft up to 31st October, 2018 has been debited in the Bank Pass Book but it has not been entered in the Cash Book.
(iii) Bank charges debited in the Bank Pass Book amounted to ₹ 35.
(iv) Cheques issued prior to 31st October, 2018 but not presented till that date, amounted to ₹ 11,500.
(v) Cheques paid into bank before 31st October, but not collected and credited up to that date, were for ₹ 2,500.
(vi) Interest on investment collected by the bankers and credited in the Bank Pass Book amounted to ₹ 1,800.

Bank has credited an interest of Rs 1,200 in the pass book & charged a bank charge of Rs 100 for issue of debit card. Which of the following is true in this regard?

Which of the following needs to be debited in cash book, when they are reflected in pass book?

The correct option is C Interest credited Interest credited by bank into the pass book increases the bank balance and therefore needs to be debited in cash book.

The correct option is C
Interest credited

Interest credited by bank into the pass book increases the bank balance and therefore needs to be debited in cash book.