While preparing a BRS, starting from the overdraft as per Cash Book, a cheque deposited but dishonoured, already recorded in Cash Book but not in Pass Book, will be:
Explanation:
Overdraft as per Cash Book means negative balance. Dishonoured cheque was credited in Cash Book, increasing (debit) balance, but actually bank didn't credit. So to reconcile to Pass Book overdraft, we need to reverse that effect: deduct from overdraft in Cash Book (i.e., make it more negative). So deducted.
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