Why credit transfer is added not deducted in this question? Is it the transfer we receive or we do?
Dear student,
Credit transfers or Direct credits are the money received in the bank directly. Therefore, the overdraft balance as per Pass book reduced. Since, Rs 1000 credit transfer was not recorded in the Cash book, we will add back Rs. 1000 to the overdraft balance of Pass book to maintain the balance between both the books.
Regards!!
Credit transfers or Direct credits are the money received in the bank directly. Therefore, the overdraft balance as per Pass book reduced. Since, Rs 1000 credit transfer was not recorded in the Cash book, we will add back Rs. 1000 to the overdraft balance of Pass book to maintain the balance between both the books.
Regards!!