The credit balance as per pass book of Mr. X was Rs. 65,600. Cheques issued but not presented for payment Rs. 75,800. Cheques deposited by one of the customers of the bank but wrongly credited in Mr. X account Rs. 20,600. The balance as per cash book will be:-a)Rs. 30,800 Debitb)Rs. 30,800 overdraftc)Rs. 1,20,800 Debitd)Rs. 10,400 overdraft.Correct answer is option 'B'. Can you explain this answer?

Question

Answer

Calculation of Cash Book Balance

Credit balance as per pass book = Rs. 65,600
Cheques issued but not presented for payment = Rs. 75,800
Cheques deposited by a customer but wrongly credited in Mr. X account = Rs. 20,600

To calculate the balance as per cash book, we need to adjust the above items in the credit balance as per pass book.

Step 1: Adjust the cheques issued but not presented for payment
Credit balance as per pass book = Rs. 65,600
Less: Cheques issued but not presented for payment = Rs. 75,800
Adjusted balance = Rs. (10,200) (overdraft)

Step 2: Adjust the cheques deposited by a customer but wrongly credited in Mr. X account
Credit balance as per pass book = Rs. (10,200) (overdraft)
Add: Cheques deposited by a customer but wrongly credited in Mr. X account = Rs. 20,600
Adjusted balance = Rs. 10,400 (overdraft)

Therefore, the balance as per cash book will be Rs. 10,400 (overdraft).

Answer

The target is cash book but the entries of that they are making the target down so the cash book is overdraft.
balance as per passbook. =65600
(-)cheques issued but not presented =75800
(-)wrongly credit to pass book =20600
overdraft balance as per cash book=(30800)

Answer

Here  favourable balance as per passbook is given so when we have issued cheques our debit side is reduced but in passbook no such thing is done due to not presentment of cheque so no such deduction is made in passbook so to reach the balance as per cash book we have to deduct it as done in cash book also when bank has given us credit I.e increased our bank balance by mistake but no such thing is done in cashbook i.e no such addition is made so to reach cashbook balance it will be deducted I hope u understood

Answer

Correct option is B)

Answer

Balance as per pass book.                                   65600.             Less:                                                                                                cheque issued but not presented.   75800                                               wrongly debited.                                 20600.        96400.          overdraft as per cash book.                                   30800

Answer

Option:B)
BRS Mr X for the year.

opening balance pass book favourable (cr)= 65600

Less :1.Cheque issued not presented for payment=75800

2.wrong credit given by banker= 20600

Balance as per cash book (overdraft) = 30800

Answer

Option B

Similar CA Foundation Doubts

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