The cash book shows an overdraft of Rs 10,000. Cheques of Rs 3,000 issued have not been presented for payment. Ignoring other items, what is the overdraft as per the bank statement?
Correct answer D. Rs 7,000
Explanation
The cash book has already increased the overdraft for these cheques, but the bank has not paid them yet, so the bank overdraft is smaller: 10,000 - 3,000 = Rs 7,000.
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