CSEET · Fundamentals of Accounting · Accounting Process
Gupta & Co. has a bank overdraft of ₹18,000 as per the cash book. Cheques issued of ₹6,000 are not yet presented, and cheques deposited of ₹9,000 are not yet cleared. What is the overdraft as per the pass book?
The overdraft per the pass book is ₹21,000. Treat the cash book overdraft as -18,000, add unpresented issued cheques of 6,000, and deduct uncleared deposited cheques of 9,000, giving -21,000, which is an overdraft of ₹21,000.
- A₹21,000Correct
- B₹15,000
- C₹33,000
- D₹3,000
Explanation
Start with an overdraft of ₹18,000 (negative balance, -18,000). Unpresented cheques issued: add 6,000, giving -12,000. Uncleared deposited cheques: deduct 9,000, giving -21,000. So the overdraft per pass book is ₹21,000. Option ₹15,000 reverses the signs of the adjustments.
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