Multiple choice

The balance as per the cash book was Rs. 3,520. A cheque of Rs. 12, 000 issued to a supplier was not recorded in the cash book, while a cheque of Rs. 3, 000 was deposited but dishonoured. Find the pass book balance.

  1. Rs. 11,480 overdraft

  2. Rs. 11,480 balance

  3. Rs. 5,480 overdraft

  4. Rs. 5,480 balance
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A Correct answer
Explanation

(A)       The entries are recorded from the angle of pass book. Balance Rs. 3, 520 - 12, 000 - 3, 000 = Rs. 11, 480 overdraft (B)       3, 520 - 12, 000 - 3, 000 = Rs. 11, 480 balance (C)       3, 520 - 12, 000 + 3, 000 = Rs. 5, 480 balance (D)       3, 520 - 12, 000 + 3, 000 = Rs. 5, 480 balance

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