Ask a Doubt
Request a call back

Join NOW to get access to exclusive study material for best results

CBSE Class 11-commerce Answered

Explain favourable balance as per the cash book.
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
answered-by-expert Expert Answer

Favourable balance is the excess of total of debit side over total of credit side of a bank column of a cash book. It is also known as debit balance as per the cash book. In other words, favourable balance means excess of deposits over withdrawals.

Answered by | 18 Jul, 2016, 06:09: PM
Multiple Choice Questions Practice Test
Answered Unanswered My Questions My Answers
CBSE 11-commerce - Accountancy Part I
Prepare a Bank Reconciliation Statement on 31st December 2015 for the following when credit balance as per bank column of cash book is Rs.1,800:  i. Cheques issued, but not presented for payment Rs.360. ii. Cheque deposited but not collected by the bank. `70 iii. Interest on overdraft charged by the bank Rs.30. iv. A customer directly deposited in bank Rs.500.
Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
Prepare a Bank Reconciliation Statement of Mr. Rivij Jain on 31st May 2012 from the following:  i. Dr. Balance as per Pass book Rs.50,000.  ii. Cheque issued to Mr. Ram for Rs.2,000 not entered in Cash Book.  iii. Mr. Dhanam (Debtor) deposited an amount of Rs.1,000 directly into the bank account of Mr. Rivij Jain.  iv. Cheque Received from Mr. Guru for Rs.6,000, entered in cash book but not sent to bank.  v. There was a credit in the pass book for Rs.600 and another credit for Rs.200 for interest.  vi. Bank charges Rs.500entered twice in cash book.
Asked by Topperlearning User | 04 Jul, 2016, 08:16: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
Explain the term ‘favourable balance as per the pass book’.
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
On 31st December, 2015 the cash book of Mr. Ajay Singh showed a debit balance of Rs.8,600. On comparing with the passbook, the following facts were discovered: Two cheques of Rs.400 and Rs.800 were deposited in the bank on 29th December but not yet collected by the bank On 30th December, bank credited Rs.900 as interest but this is not recorded in the cash book. On 26th December, three cheques of Rs.800, Rs.1000 and Rs.1200 were issued but only the first was presented to the bank for payment. Bank charges of Rs.300 were not entered in the cash book. Prepare the bank reconciliation statement as on 31st December, 2015.
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
From the following particulars, prepare a bank reconciliation statement as on 31st January, 2015: On 31st January, the cash book of a firm showed a bank balance of Rs.12,345 (debit balance) Cheques had been issued for Rs.8,350; out of which cheques worth Rs.2,451 only were presented for payment Cheques worth Rs.1,400 were deposited in the bank on 28th January, but had not been credited by the bank. In addition to this, one cheque for Rs.450 was entered in the cash book on 30th January, but was banked on 3rd February. A cheque from Rs.400 was deposited in the bank on 26th January, but was dishonoured. Pass book showed bank charged Rs.250 is debited by the bank. One of the debtors directly deposited a sum of Rs.500 in the bank account of the firm on 20th January.
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
From the following particulars, prepare a bank reconciliation statement showing the balance as per the cash book on March 31st, 2015. Two cheques of Rs.4,000 and Rs.3,000 were paid to bank on March, 2015 but were not credited by the bank in the month of March. A cheque of Rs.700 which was received from a customer in March 2015 was omitted to be banked but was recorded in the cash book. Cheques for Rs.8,350 were issued into bank in January 2015 but not debited by the bank till March 31, 2015. Interest of Rs.1,250 on investment collected by bank appeared in the passbook. Balance as per passbook was Rs.85,000.
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
From the following particulars, prepare a bank reconciliation statement showing the balance as per passbook on January 31, 2016. Overdraft shown as per cash book on January 31, 2016 Rs.8,000 Interest on overdraft for six months ending January 31, 2016 of Rs.380 debited in the passbook Cheques issued but not encashed prior to January 31, 2016 amounted to Rs.2,150 Interest on investment collected by the bank and credited in the passbook Rs.1000 Bank charges for the above period also debited in the passbook Rs.500 Cheques paid to bank but not cleared before January, 31 2016 were Rs.6,450 A bill receivable for Rs.500 previously discounted with the bank had been dishonoured and debited in the passbook.
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
The passbook of Mr. Raj shows a debit balance of Rs.15,000. Prepare the bank reconciliation statement dated as on December 31, 2005. Bank charges debited as per passbook →Rs.400 Bank received a payment directly from Mr. Kumar → Rs.6,500 Cheque issued to Mr. Ravi but not presented for payment → Rs.3,880 Interest credited by the bank → Rs.600 Telephone bill paid by bank → Rs.1,500 Cheques deposited with the bank but not collected → Rs.2,600 Mr. Raj recorded cheques in the cash book but did not send the same to the bank for collection  → Rs.1,500
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
The cash book of M/s Shah and Sons showed a debit balance of Rs.47,500 on March 31, 2016. Out of cheques amounting to Rs.4,000 drawn by M/s Shah and Sons on March 27, a cheque for Rs.1,600 was encashed in April. Bank credited Rs.3,800 for interest collected by them, but the amount is not entered in the cash book Rs.7,400 was paid in by M/s Shah and Sons by cheques on March, 31; of which cheques amounting to Rs.1,800 were collected in April A cheque of Rs.780 credited in the pass book on March 28 was dishonoured. There was no entry in the cash book about the dishonour of the cheque until April. Prepare bank reconciliation statement on March 31, 2016.
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
From the following particulars of Mr. Harish Kumar, ascertain the balance as per passbook on December 31, 2015. The bank balance as per cash book was Rs.9,500 on December 31, 2015 Cheques issued but not cashed before date amounted to Rs.2,570 Cheques paid into bank, but not cleared before December 31, 2015 amounted to Rs.2,000 Interest on investments collected by the bank but not entered in the cash book amounted to Rs.875 Cheque issued for Rs.2,500 but was entered as Rs.250 in the cash book Bank charges debited only in the passbook Rs.150
Asked by Topperlearning User | 18 Jul, 2016, 04:09: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
My Class Videos Tests ₹ Plans Ask a Doubt
Get Latest Study Material for Academic year 24-25 Click here
×