Multiple choice

In the bank reconciliation statement starting from bank balance, a cheque issued for Rs. 500 was wrongly credited by bank as Rs. 1000/-. Bank balance will be

  1. added by 1500

  2. subtracted by 1500

  3. added by 1000

  4. subtracted by 500

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

500 subtracted for actual debit and 1000 subtracted for rectifying wrong credit and hence, net subtraction = 1500.