' the credit balance of rs.1500 as on page 10 of the pass book was recorded on page 11 as a debit balance'. how to record this in BRS when credit balance as per pass book is given?
Hi Aarti,
In case credit balance of Pass Book has been brought forward as debit balance that means the bank account carrying a positive balance now shows a negative balance. Accordingly, it would be added to Balance as per Pass Book with double amount in order to reconcile the same with the Cash Book. The reason for adding double amount is, if we add Rs 1,500 only, this will just balance the wrong debit given against credit. However, to show the correct credit treatment additional Rs 1,500 would be added to reconcile the balance of two books.
Hope this clears your doubt. In case of any other doubt, do get back to us.
In case credit balance of Pass Book has been brought forward as debit balance that means the bank account carrying a positive balance now shows a negative balance. Accordingly, it would be added to Balance as per Pass Book with double amount in order to reconcile the same with the Cash Book. The reason for adding double amount is, if we add Rs 1,500 only, this will just balance the wrong debit given against credit. However, to show the correct credit treatment additional Rs 1,500 would be added to reconcile the balance of two books.
Hope this clears your doubt. In case of any other doubt, do get back to us.