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Pls tell me what does this question mean and wat shd I do ??sub Question 6 ) only
Answers (4)
Thread Starter
Reetikaa RMa'am here it is
Practically, when we deposit cheque received from our customer with our bank, we will increase bank balance as per cash book. Bank account is also credited in Pass book (and it is subject to clearance). But here later, the cheque returned from the bank to whom our bank had sent for collection, so our bank reversed the entry and made a debit of Rs. 3,500. In short, in pass book they first made a credit and then debit i.e. zero effect. But in cash book, we had increased bank balance. This means cash book balance is more by Rs. 3,500. In this particular question, we need to increase overdraft balance further. Hope this clarifies.
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