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Two sums of similar nature solved differently in Banking Companies (ICAI Study Mat)

Requesting your attention to *Illustration 4 (Vaishnavi Bank) on Page 8.108 of Module 3 of ICAI- Advanced Accounting and * Question 5 (DVD Bank) on Page 8.122 of the same book. The treatment of overdraft against current account while being the same adjustment have been shown differently in both sums. I am attaching the photos of the relavant parts of the question and solution of both problems as given in the study material. Requesting you to advice on what is the right treatment and what we should do in the exam if either of these sums appear.

Attachments

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Suraj Narayanan

Suraj Narayanan

CA Inter

7K+

12-Oct-20 16:48

21

Answers (1)

When you remove OD balance, it will increase the current account balance. THe practice question 5 has incorrectly computed the closing balance of current account.


Suraj Lakhotia

Suraj Lakhotia

Admin

17-Oct-20 08:31