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In the answer of this question the balance as per cash book is overdraft of bank column As seen in this answer which are to be less they are added and which are to be added are less This type of situation happens in pass book if balance given The reverse happens if we take base as cashbook Can I do reverse which are added I will less and vice versa irrespective of balance is favourable or unfavorable

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Gurukanta Singh

Gurukanta Singh

CA Inter

20K+

20-Jun-25 19:50

307

Answers (4)

THe logic to use is - If due to a particular entry does the overdraft as per bank would be higher or lower. For e.g. interest charged by bank - this will increase bank overdraft and hence we add to OD balance. Alternatively you can use "-" sign (and apply logic that you would apply for a favourable balance) Balance as per passbook : -22,45,900 Less: Interest charged : -2,78,700


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

23-Jun-25 13:04

Can we put overdraft balance in brackets to represent it has a negative balance


Thread Starter

Gurukanta Singh

Gurukanta Singh

CA Inter

20K+

23-Jun-25 13:43

Yes


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

23-Jun-25 13:44

Thanks sir


Thread Starter

Gurukanta Singh

Gurukanta Singh

CA Inter

20K+

23-Jun-25 13:44

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