When overdraft as per Cash Book is given, bank charges debited in Pass Book only are to be added.
State whether the following statements are True or False with reason:
When overdraft as per Cash Book is given, bank charges debited in Pass Book only are to be added.
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This statement is True.
Bank overdraft as per cash book means negative bank balance. The businessman has to pay the Bank. Bank charges are expenses for the business and this increases the amount payable to the bank so bank charges debited in the passbook only are to be added in the cash book.
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