Assertion (A): In a bank reconciliation statement, if we start with the overdraft balance as per the Cash Book, cheques deposited but not credited by the bank will be added. Reason (R): Cheques deposited but not credited increase the bank balance as per the pass book, but not the cash book. Choose the correct option.
A.Both A and R are true and R is the correct explanation of A
B.A is true but R is false
C.A is false but R is true
D.Both A and R are true but R is NOT the correct explanation of A
Explanation:
A is false. If starting with an overdraft as per the Cash Book, cheques deposited but not credited (which increase the pass book balance) must be deducted to increase the overdraft amount, not added. R is true as a standalone statement.
In the context of the Indian Financial System, the 'Deposit Insurance and Credit Guarantee Corporation' (DICGC) provides insurance coverage for bank deposits up to:
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