Question

From the following particular ascertain the pass book balance of seenu as on 31.12.1993
a).bank overdraft as per cash book Rs.16,340
b).interest on overdraft debited in pass book Rs.1,000

Answer 1

bank over draftas per cash book Rs 16340

Answer 2

Bank overdraft is always a negative balance.

If there is interest charged on overdraft, then it will always debited.

This means that loan and more loan.

So here we will go like this.

First of all we will post the balance as per cash book in the debit side as ₹ 16,340.

Then we will debit the interest on the bank overdraft by ₹1,000.

We will add them up.

The balance as per bank will come to be ₹ 17,340.