Multiple choice

When preparing Bank Reconciliation Statement, if you start with balance as per Pass Book, then cheques paid by bank recorded twice in Pass Book as Rs. 1,050 will be __________.

  1. added

  2. deducted

  3. not required to be adjusted

  4. None of the above
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A Correct answer
Explanation

Correct entry would have been subtracting the amount from the pass book, but as the amount has been recorded twice, it means the amount has been subtracted twice, so the amount will be added once to nullify the difference. 

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