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The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:
- a)Rs. 2,000 will be deducted
- b)Rs. 2,000 will be added
- c)Rs. 4,000 will be deducted
- d)Rs. 4,000 will be added
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
The credit balance of Rs. 2,000 in the bank column of the cash book wa...
Explanation:
When the credit balance of Rs. 2,000 in the bank column of the cash book was carried forward as its debit balance, it means that the cash book shows an overdraft balance of Rs. 2,000 instead of a credit balance.
Now, we need to compare this balance with the balance as per pass book. If the pass book shows an overdraft balance, then we need to deduct it from the cash book balance. If the pass book shows a credit balance, then we need to add it to the cash book balance.
In this question, the starting point is given as the pass book showing an overdraft balance. Therefore, we need to deduct this balance from the cash book balance.
So, the calculation would be:
Cash book balance (overdraft) = Rs. 2,000 (debit balance)
Pass book balance (overdraft) = Given
Overdraft as per pass book = Pass book balance - Cash book balance
Since the pass book balance is an overdraft balance, it would be higher than the cash book balance (overdraft). Therefore, we need to deduct the cash book balance from the pass book balance.
Overdraft as per pass book = Pass book balance - Cash book balance
Overdraft as per pass book = (Given) - Rs. 2,000
Overdraft as per pass book = Rs. (Given - 2,000)
Hence, option C. Rs. 4,000 will be deducted is the correct answer.
When the credit balance of Rs. 2,000 in the bank column of the cash book was carried forward as its debit balance, it means that the cash book shows an overdraft balance of Rs. 2,000 instead of a credit balance.
Now, we need to compare this balance with the balance as per pass book. If the pass book shows an overdraft balance, then we need to deduct it from the cash book balance. If the pass book shows a credit balance, then we need to add it to the cash book balance.
In this question, the starting point is given as the pass book showing an overdraft balance. Therefore, we need to deduct this balance from the cash book balance.
So, the calculation would be:
Cash book balance (overdraft) = Rs. 2,000 (debit balance)
Pass book balance (overdraft) = Given
Overdraft as per pass book = Pass book balance - Cash book balance
Since the pass book balance is an overdraft balance, it would be higher than the cash book balance (overdraft). Therefore, we need to deduct the cash book balance from the pass book balance.
Overdraft as per pass book = Pass book balance - Cash book balance
Overdraft as per pass book = (Given) - Rs. 2,000
Overdraft as per pass book = Rs. (Given - 2,000)
Hence, option C. Rs. 4,000 will be deducted is the correct answer.
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Community Answer
The credit balance of Rs. 2,000 in the bank column of the cash book wa...
Given in Rs. 2000 is increase in debit side of bank column of cash book so the resists sides is increase and payment side is decrease . so we balanced the both sides by adding Rs. 4000 in credit side and deducting Rs. 2000 in debit sides.
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The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:a)Rs. 2,000 will be deductedb)Rs. 2,000 will be addedc)Rs. 4,000 will be deductedd)Rs. 4,000 will be addedCorrect answer is option 'C'. Can you explain this answer?
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The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:a)Rs. 2,000 will be deductedb)Rs. 2,000 will be addedc)Rs. 4,000 will be deductedd)Rs. 4,000 will be addedCorrect answer is option 'C'. 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 The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:a)Rs. 2,000 will be deductedb)Rs. 2,000 will be addedc)Rs. 4,000 will be deductedd)Rs. 4,000 will be addedCorrect answer is option 'C'. 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 The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:a)Rs. 2,000 will be deductedb)Rs. 2,000 will be addedc)Rs. 4,000 will be deductedd)Rs. 4,000 will be addedCorrect answer is option 'C'. Can you explain this answer?.
The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:a)Rs. 2,000 will be deductedb)Rs. 2,000 will be addedc)Rs. 4,000 will be deductedd)Rs. 4,000 will be addedCorrect answer is option 'C'. 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 The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:a)Rs. 2,000 will be deductedb)Rs. 2,000 will be addedc)Rs. 4,000 will be deductedd)Rs. 4,000 will be addedCorrect answer is option 'C'. 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 The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:a)Rs. 2,000 will be deductedb)Rs. 2,000 will be addedc)Rs. 4,000 will be deductedd)Rs. 4,000 will be addedCorrect answer is option 'C'. Can you explain this answer?.
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