X co .was maintaining account with KRB Bank Ltd. On 31st December, 2013, Bank column of cash book o

X co .was maintaining account with KRB Bank Ltd. On 31st December, 2013, Bank column of cash book of company showed a debit balance of Rs. 26000. Cheques deposited into the bank but not credited before 31st December,2006 amounted to Rs.4000. Bank charges of Rs. 500 were debited by the bank but no entry was made by the accountant of the company. From the above particulars, find out the balance as per KRB Bank’s books. a. Rs.30500 b. Rs.25500 c. Rs.21500 d. Rs.22500 Explain

 

Option c 1)The cheque has been credited in the cash book but not by the bank,so the cash book is higher by 4,000 .to nullify the difference, subtract 4000 from the balance 26000 2) the bank charges have been debited from the bank ,the bank balance is lower by 500.to balance the difference subtract 500 from the cash book bank balance ...See more

 

Cheque not credited before 31 Dec 2006.. what is its significance as the ban balance is asked as in 2013

 

That I also want to know . I need someone to explain the concept pls. if you know someone who can.. Kindly tag.

 

26000 is the balance in company's own book .N chqs amounting to rs 4000 which wr deposited into the bank before 31.12.2006 were never credited to the account so far. so the company's book shows surplus of 4000 so we need to subtract it from 26000 whi...See more