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 Bank Overdraft as per cash book is Rs. 10,500. Interest debited by bank Rs. 3,500 for which advice was not received by account holder. Cheques deposited but not credited by bank Rs. 7,500. Cheques issued but not yet presented Rs. 9,500. What is the Overdraft amount as per Pass Book?
  • a)
    Rs. 12,000
  • b)
    Rs. 16,000
  • c)
    Rs. 5,000
  • d)
    Rs. 9,000
Correct answer is 'A'. Can you explain this answer?
Most Upvoted Answer
Bank Overdraft as per cash book is Rs. 10,500. Interest debited by ban...
Given:
Overdraft as per cash book = Rs. 10,500
Interest debited by bank = Rs. 3,500
Cheques deposited but not credited by bank = Rs. 7,500
Cheques issued but not yet presented = Rs. 9,500

To find: Overdraft amount as per Pass Book

Calculation:
1. Add interest debited by bank to the Overdraft as per cash book
= Rs. 10,500 + Rs. 3,500
= Rs. 14,000

2. Deduct cheques deposited but not credited by bank
= Rs. 14,000 - Rs. 7,500
= Rs. 6,500

3. Deduct cheques issued but not yet presented
= Rs. 6,500 - Rs. 9,500
= Rs. -3,000

As the final balance is negative, it means the Pass Book is overdrawn by Rs. 3,000.

However, we need to keep in mind that the question asks for the Overdraft amount as per Pass Book, which is technically the opposite of being overdrawn. Therefore, we need to take the absolute value of the final balance.

Final Answer:
The Overdraft amount as per Pass Book is Rs. 12,000 (absolute value of Rs. -3,000).
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Bank Overdraft as per cash book is Rs. 10,500. Interest debited by ban...
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Bank Overdraft as per cash book is Rs. 10,500. Interest debited by bank Rs. 3,500 for which advice was not received by account holder. Cheques deposited but not credited by bank Rs. 7,500. Cheques issued but not yet presented Rs. 9,500. What is the Overdraft amount as per Pass Book?a)Rs. 12,000b)Rs. 16,000c)Rs. 5,000d)Rs. 9,000Correct answer is 'A'. Can you explain this answer?
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