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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
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