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Can you explain the answer of this question below:
When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :
- A:Added by Rs. 500
- B:Deducted by Rs. 500
- C:Added by Rs. 1,000
- D:Deducted by Rs. 1,000
The answer is b.
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Can you explain the answer of this question below:When overdraft as pe...
Overdraft as per the cash book means that the amount is overdrawn.A cheque of Rs 500 is deposited into the bank but not recorded in the cash book means that the balance of cash book shows a higher overdraft balance because if the entry of Rs 500 was made then the overdraft balance will get reduced by Rs 500.This amount is credited by the bank thus overdraft as per pass book stands decreased,therefore in order to decrease the overdraft balance as per cash book we will deduct Rs 500 from the overdraft balance as per the cash book.
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Can you explain the answer of this question below:When overdraft as pe...
Explanation:
When overdraft as per Cash Book is the starting point, it means that the Cash Book already shows an overdrawn balance in the bank account. In this case, a cheque of Rs. 500 deposited into the bank but not recorded in the cash book will have the following implications:
1. Effect on the Bank Balance
The bank balance will increase by Rs. 500 because the cheque has been deposited into the bank account.
2. Effect on the Cash Book Balance
The Cash Book will still show an overdrawn balance because the cheque deposit has not been recorded in the Cash Book. Therefore, the balance in the Cash Book will remain the same.
3. Reconciliation
When the bank statement is received, it will show the deposit of Rs. 500. This deposit will need to be added to the Cash Book balance to reconcile the bank statement.
4. Adjustment
To adjust the Cash Book balance, the deposit of Rs. 500 will need to be deducted from the overdrawn balance. Therefore, the correct answer is option 'B', which states that the cheque deposit will be deducted by Rs. 500.
Conclusion:
Whenever there is a discrepancy between the bank balance and the Cash Book balance, it is important to reconcile the accounts. This involves identifying the items that have not been recorded in either the bank statement or the Cash Book and adjusting the balances accordingly.
When overdraft as per Cash Book is the starting point, it means that the Cash Book already shows an overdrawn balance in the bank account. In this case, a cheque of Rs. 500 deposited into the bank but not recorded in the cash book will have the following implications:
1. Effect on the Bank Balance
The bank balance will increase by Rs. 500 because the cheque has been deposited into the bank account.
2. Effect on the Cash Book Balance
The Cash Book will still show an overdrawn balance because the cheque deposit has not been recorded in the Cash Book. Therefore, the balance in the Cash Book will remain the same.
3. Reconciliation
When the bank statement is received, it will show the deposit of Rs. 500. This deposit will need to be added to the Cash Book balance to reconcile the bank statement.
4. Adjustment
To adjust the Cash Book balance, the deposit of Rs. 500 will need to be deducted from the overdrawn balance. Therefore, the correct answer is option 'B', which states that the cheque deposit will be deducted by Rs. 500.
Conclusion:
Whenever there is a discrepancy between the bank balance and the Cash Book balance, it is important to reconcile the accounts. This involves identifying the items that have not been recorded in either the bank statement or the Cash Book and adjusting the balances accordingly.
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Can you explain the answer of this question below:When overdraft as pe...
Starting Point - Overdraft Of Cash Book. whenever Overdraft reduces, Deduct. Overdraft increases, Add. Here cheque deposited reduces the overdraft, deduct 500
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Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b.
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Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b. for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b..
Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b. for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b..
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Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b., a detailed solution for Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b. has been provided alongside types of Can you explain the answer of this question below:When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :A:Added by Rs. 500B:Deducted by Rs. 500C:Added by Rs. 1,000D:Deducted by Rs. 1,000The answer is b. theory, EduRev gives you an
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