Question Bank - Accountancy

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The following information of Mamta Tyagi is given on 31 December 2017.Bank balance as per the passbook is Rs. 10,000. Dividend of Rs. 2,000 was collected by the bank but was entered in the cash book as Rs. 200. What is the cash book bank-balance ?

A.
Rs. 10,200
B.
Rs. 11,800
C.
Rs. 12,000
D.
Rs. 8,200

Solution:

In the above question dividend of Rs. 2000, collected by the bank was posted to cashbook as Rs. 200, which will result in a shortfall of Rs. 1800(2000-200) in the cashbook. So, as per the question, the Bank balance in the cashbook will be Rs. 10000-1800 = Rs. 8200. Therefore, option no. 4 is correct.

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