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An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:
- a)Rs. 5,000 will be deducted
- b)Rs. 5,000 will be added
- c)Rs. 10,000 will be deducted
- d)Rs. 10,000 will be added
Correct answer is option 'B'. Can you explain this answer?
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Bank Reconciliation Statement and Overdraft
Bank Reconciliation Statement (BRS) is a statement that helps in reconciling the difference between the balance as per the bank statement and the balance as per the cash book. Overdraft is a credit facility provided by banks to their customers, where the customer can withdraw more than the available balance in their account, up to a certain limit.
Impact of Double Debit of Rs. 5,000
When an amount is debited twice in the pass book, it creates a discrepancy between the two balances. To correct this discrepancy, the amount needs to be adjusted in the Bank Reconciliation Statement. In the given scenario, an amount of Rs. 5,000 has been debited twice in the pass book, which means that the balance as per the pass book is lower by Rs. 5,000 than the actual balance.
Since the starting point for the reconciliation is the cash book balance, the overdraft as per the cash book needs to be adjusted. If the overdraft balance is deducted from the cash book balance, the corrected balance will be the actual balance available in the account. Therefore, in this case, Rs. 5,000 needs to be added to the cash book balance to adjust for the double debit in the pass book.
Answer: Option B - Rs. 5,000 will be added to the cash book balance.
Bank Reconciliation Statement (BRS) is a statement that helps in reconciling the difference between the balance as per the bank statement and the balance as per the cash book. Overdraft is a credit facility provided by banks to their customers, where the customer can withdraw more than the available balance in their account, up to a certain limit.
Impact of Double Debit of Rs. 5,000
When an amount is debited twice in the pass book, it creates a discrepancy between the two balances. To correct this discrepancy, the amount needs to be adjusted in the Bank Reconciliation Statement. In the given scenario, an amount of Rs. 5,000 has been debited twice in the pass book, which means that the balance as per the pass book is lower by Rs. 5,000 than the actual balance.
Since the starting point for the reconciliation is the cash book balance, the overdraft as per the cash book needs to be adjusted. If the overdraft balance is deducted from the cash book balance, the corrected balance will be the actual balance available in the account. Therefore, in this case, Rs. 5,000 needs to be added to the cash book balance to adjust for the double debit in the pass book.
Answer: Option B - Rs. 5,000 will be added to the cash book balance.
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An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option 'B'. Can you explain this answer?
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An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option '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 An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option '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 An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option 'B'. Can you explain this answer?.
An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option '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 An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option '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 An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option 'B'. Can you explain this answer?.
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An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point:a)Rs. 5,000 will be deductedb)Rs. 5,000 will be addedc)Rs. 10,000 will be deductedd)Rs. 10,000 will be addedCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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