please tell how to know which transaction is plus and minus in bank reconcilination statement?
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you just have to think cash book as your own book of receipts in which you debit for reciepts and credit for payments. And pass book is just the reverse of cash book.
Now first see that which(pass book or cash book). Now if you have given pass book balance then you can add or subtract in pass book only and vice versa. Let we understand this with an example
we have given a balance of pass book in the beginning of question.Now let we have given the following entry:
cheques of 500 deposited but not cleared.
Now understand, cheque deposited means you have increased your own book or cash book so you have increased cash book balance. since we have two alternatives of either decrrasing cash book or increasing pass book. since we have given pass book balance so we will increase pass book.
Its simple.isn it?
Now first see that which(pass book or cash book). Now if you have given pass book balance then you can add or subtract in pass book only and vice versa. Let we understand this with an example
we have given a balance of pass book in the beginning of question.Now let we have given the following entry:
cheques of 500 deposited but not cleared.
Now understand, cheque deposited means you have increased your own book or cash book so you have increased cash book balance. since we have two alternatives of either decrrasing cash book or increasing pass book. since we have given pass book balance so we will increase pass book.
Its simple.isn it?
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