Here's the question bank on all the law officer topics.
M/s Gupta Limited shows the bank balance as per the passbook Rs. 8,700. Cash withdrawal from the bank for Rs. 4,500 recorded as Rs. 450 in the cash book. What is the balance as per the cash book?
The correct answer is Rs. 12750Important PointsSince Cash is withdrawn from the bank, this should reduce the balance in both the cashbook and passbookA credit of Rs. 4500 should have been made in Cashbook which is, by mistake, recorded as Rs. 450.This will result in an increase in the overall balance of Cashbook as credit has been made from a much lesser amount than the actual amountSince the starting balance is a Credit (favourable) balance as per passbook of Rs. 8700, the difference amount of Rs. 4050 should be added in order to tally the cashbook and passbook.Rs. 4050 when added to Rs. 8700 will give Rs.12750 as the balance as per Cashbook.SolutionParticularsPlus ItemsMinus ItemsBalance as per the Passbook8700 Cash withdrawal from the bank for Rs. 4,500 was recorded as Rs. 450 in the cash book4050 Total12750 Balance as per the Cashbook12750
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