Multiple choice

Overdraft as per the cash book on 31st March, 2009, was Rs. 20,000. It was found that the bank charges of Rs. 500 recorded in the cash book were not adjusted in the cash book, while other charges of Rs. 800 were recorded twice in the cash book. In addition, a cheque of Rs. 1000 discounted with bank for Rs. 980 was recorded without adjusting the discount. Calculate the pass book overdraft figures.

  1. Rs. 20,320

  2. Rs. 20,280

  3. Rs. 18,720

  4. Rs. 19,720
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

(A)       20, 000 + 500 + 800 + 20 = 20, 320 (B)       20, 000 + 500 + 800 - 20 = 20, 280         (C)       20, 000 - 500 - 800 + 20 = 18, 720 (D)       The entries are recorded from the angle of pass book. Overdraft Rs. 20, 000 + 500 – 800 + 20 = Rs.19, 720

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