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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
Correct answer is 'B'. Can you explain this answer?
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Verified Answer
When overdraft as per Cash Book is the starting point, a cheque of Rs....
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.
Most Upvoted Answer
When overdraft as per Cash Book is the starting point, a cheque of Rs....
Explanation:
When overdraft as per Cash Book is the starting point, it means that the cash book already shows an overdraft balance. This implies that the bank balance as per the cash book is negative.
In this scenario, a cheque of Rs. 500 is deposited into the bank but not recorded in the cash book. Let's analyze the impact of this transaction on the cash book balance.
Impact on Cash Book:
- Since the cheque is not recorded in the cash book, the cash book balance remains the same as it was before the deposit.
- As the cash book already shows an overdraft balance, the deposit of Rs. 500 will not impact the overdraft balance.
Calculation:
- Overdraft balance as per Cash Book: Negative
- Cheque deposit: Rs. 500
- Cash book balance after deposit: Same as the overdraft balance, i.e., negative
Answer:
- The cheque deposit of Rs. 500 is deducted from the cash book balance.
- Therefore, the correct answer is option B - Deducted by Rs. 500.
Summary:
When overdraft as per Cash Book is the starting point and a cheque deposit is not recorded in the cash book, the deposit amount is deducted from the cash book balance. This is because the cash book already shows an overdraft balance, and the deposit does not affect the overdraft position.
When overdraft as per Cash Book is the starting point, it means that the cash book already shows an overdraft balance. This implies that the bank balance as per the cash book is negative.
In this scenario, a cheque of Rs. 500 is deposited into the bank but not recorded in the cash book. Let's analyze the impact of this transaction on the cash book balance.
Impact on Cash Book:
- Since the cheque is not recorded in the cash book, the cash book balance remains the same as it was before the deposit.
- As the cash book already shows an overdraft balance, the deposit of Rs. 500 will not impact the overdraft balance.
Calculation:
- Overdraft balance as per Cash Book: Negative
- Cheque deposit: Rs. 500
- Cash book balance after deposit: Same as the overdraft balance, i.e., negative
Answer:
- The cheque deposit of Rs. 500 is deducted from the cash book balance.
- Therefore, the correct answer is option B - Deducted by Rs. 500.
Summary:
When overdraft as per Cash Book is the starting point and a cheque deposit is not recorded in the cash book, the deposit amount is deducted from the cash book balance. This is because the cash book already shows an overdraft balance, and the deposit does not affect the overdraft position.
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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. 1,000Correct answer is 'B'. Can you explain this answer?
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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. 1,000Correct answer is 'B'. Can you explain this answer? 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 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. 1,000Correct answer is 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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. 1,000Correct answer is 'B'. Can you explain this answer?.
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. 1,000Correct answer is 'B'. Can you explain this answer? 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 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. 1,000Correct answer is 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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. 1,000Correct answer is 'B'. Can you explain this answer?.
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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. 1,000Correct answer is 'B'. Can you explain this answer?, a detailed solution for 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. 1,000Correct answer is 'B'. Can you explain this answer? has been provided alongside types of 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. 1,000Correct answer is 'B'. Can you explain this answer? theory, EduRev gives you an
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