what is the meaning of bank charges entered twice in cash book if the balance as per pass book is given to us it will add or subtract ??? please tell me its urgent
Sanidhya,
Bank charges are the expenses that are levied by bank for providing some services. If same has been charged twice in our cash book, this means cash book balance is lesser than pass book balance. Accordingly, if we are proceeding from balance as per pass book, then the affect would be analysed upon the other book, i.e. Cash Book. Here, cash book is lower, so amount of charges would be deducted from balance as per pass book to arrive at the balance of cash book.
Bank charges are the expenses that are levied by bank for providing some services. If same has been charged twice in our cash book, this means cash book balance is lesser than pass book balance. Accordingly, if we are proceeding from balance as per pass book, then the affect would be analysed upon the other book, i.e. Cash Book. Here, cash book is lower, so amount of charges would be deducted from balance as per pass book to arrive at the balance of cash book.