overdraft as per pass book:(till 31st march)
a cheque of 600 credited in pass book on 1st of march being dishonoured was debited again in the pass book on 10th of march.there was no entry in the cash book about the dishonour until 15th march.
will this result in low balance as per pass book?
Dear Student,
Overdraft as per Pass Book is till 31st Mar . And the dishonour is already recorded in Pass book on 10th Mar, but not recorded till 15th Mar. Therefore although the impact of dishonour was not recorded in Cash Book till 15th Mar, it must have been recorded after 15th Mar & therefore before 31st Mar.
Thus, the balance of both Pass Book & Cash Book has already considered the impact of dishonour of Cheque.
But if the impact of dishonour of cheque is not recorded in Cash Book after 15th & before 31st Mar, so while preparing Bank Reconciliation statement as per Pass Book we would be required to Add this dishonour of cheque.
Regards,
Overdraft as per Pass Book is till 31st Mar . And the dishonour is already recorded in Pass book on 10th Mar, but not recorded till 15th Mar. Therefore although the impact of dishonour was not recorded in Cash Book till 15th Mar, it must have been recorded after 15th Mar & therefore before 31st Mar.
Thus, the balance of both Pass Book & Cash Book has already considered the impact of dishonour of Cheque.
But if the impact of dishonour of cheque is not recorded in Cash Book after 15th & before 31st Mar, so while preparing Bank Reconciliation statement as per Pass Book we would be required to Add this dishonour of cheque.
Regards,