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Bank reconciliation statement

To rectify in adjusted cash book, if I have given a point like bank interest and charges amounting to â?¹4200 had been charged in the bank statement but not entered in the cash book My question is bank charges is a debit in passbook and bank interest is a credit balance in passbook but nothing has been mentioned clearly how should I consider it ,is it a inflow or outflow in cash book

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lithish kumar

lithish kumar

CA Inter

1K+

24-May-20 18:53

53

Answers (5)

The interest could also be an interest on overdraft balance in which case it is an outflow.


Suraj Lakhotia

Suraj Lakhotia

Admin

25-May-20 11:06

Suraj Lakhotia Admin

The interest could also be an interest on overdraft balance in which case it is an outflow.

But sir the question shows that cash book has a debit balance which means that bank will provide us interest only if it is credit balance according to cash book balance we have to pay interest


lithish kumar

lithish kumar

CA Inter

1K+

25-May-20 11:12

Or there could be a loan linked for which interest is charged.


Suraj Lakhotia

Suraj Lakhotia

Admin

25-May-20 12:16

Suraj Lakhotia Admin

Or there could be a loan linked for which interest is charged.

Thank you sir I got it


lithish kumar

lithish kumar

CA Inter

1K+

25-May-20 17:07

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