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Doubt in BRS
Accountancy
Cheques issued but not presented to bank Overdraft As per Cash book - Favourable As per pass book - Overdraft As per Cash book + Favourable As per pass book + My question When we add amount to overdraft Can overdraft amount can reduce ? I am right or wrong
Answers (4)
Best Answer
Thread Starter
Rishi KumarFor favorable balance - Target base book For un- favorable balance - Target opposite book Am I right ??
It's like favorable cash book and unfavorable pass book have same treatment and vice versa
Thread Starter
Rishi KumarSorry I question mistake
Just hold the logic don't remember like cashbook passbook positive negatives stuff. Think and visualise if cash book to be amended and balanced to passbook, then assume cheques issued means bank balance of cash book coming down but bank hasn't noted down the transaction as BRS itself is statement done at end of certain period say a month.So assume cash going out like both of your hands and bank balance coming down means reduce your left hand if cash book is starting point and you have to reconcile your cash book with pass book so then if u want to match to another hand u need to raise your hand which means addition and add to reconcile as of pass book. That's all logic and visualisation is required for learning concepts.