Given: Overdraft balance as per cash book.
1) There is a debit in the passbook of Rs10 for back charges and Rs50 for interest.
2) A customer directly paid into his bank Rs1000, but it wasn't shown in the Cash Book.
3) Bank has padi insurance premium of Rs400 according to his standing instruction, this isn't recorded in the Cash Book.
Please tell me whether to deduct or add in each case
Dear Student,
Overdraft balance as per Cash Book is given and we need to Know balance as per Pass book , so :
1) For debit of Bank charges & interest amount in Pass book, there would be deduction from Cash Book overdraft balance;
2) For customer directly paid into Bank; this would be added to Cash Book overdraft balance;
3) For bank directly paid insurance premium , there would be deduction from Cash Book overdraft balance;
Regards,
Overdraft balance as per Cash Book is given and we need to Know balance as per Pass book , so :
1) For debit of Bank charges & interest amount in Pass book, there would be deduction from Cash Book overdraft balance;
2) For customer directly paid into Bank; this would be added to Cash Book overdraft balance;
3) For bank directly paid insurance premium , there would be deduction from Cash Book overdraft balance;
Regards,