Accounts brs doubt

 

The bank charged Rs.1000 of bank charges to a
client and communicated the same to him.
Afterwards the accountant of the bank, later
verified, that charges were wrongly charged
and cancelled in client’s a/c but forgot to
communicate the same to the client. If the
client is starting with the cash book, what will
be the effect of this transaction for balance as
per pass book.
a) Reduce Rs.1000 b) Add Rs.1000
c) Add Rs.2,000 d) no treatment
Replies (4)

Since bank has already communicated to the client abt the charges deduction, so it is assumed that client had deducted those charges of Rs.1000 from cash book on communication date.

Now if the same charges have been eliminated/waived by the bank so the client should add Rs. 1000 to his cash book to get his cashbook tallied with Bank Pass Book

 

So the answer is (b) Add Rs.1000

 

PRODUCTION FUNCTION REFERS TO?

Production function shows the relation between
a) Physical inputs and physical output
b) Technical input and technical output
c) Market price and quantity supplied
d) None of these

Adding Rs. 1000 is correct and the reason is too correctly explained by Manish ji

Mr. Manish is absolutely right.  I am attaching here a link for a video on Bank Reconciliation Statement.  It may be useful to students as well as professionals.  You are requested to give your valuable feedback.

 

https://www.youtube.com/user/jbsclasses

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