Question

On 1st April 2020, Cash balance (Overdraft) in Bank ₹ 2550/. On 5th April 2020 a Cheque of ₹ 5550/ deposited int bank. Bank Balance on 30th April 2020, will be………
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Answer 1

Answer:

Overdraft as per the cash book means that the amount is overdrawn. A cheque of Rs 500 is deposited into the bank but not recorded in the cash book means that the balance of cash book shows a higher overdraft balance because if the entry of Rs 500 was made then the overdraft balance will get reduced by Rs 500