CA Foundation Exam > CA Foundation Questions > When overdraft as per Cash Book is the starti...
Start Learning for Free
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?
| FREE This question is part of | Download PDF Attempt this Test |
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.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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?
Question Description
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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning 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? defined & explained in the simplest way possible. Besides giving the explanation 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?, 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
ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup