how discounted bill dishonoured treated in brs starting from cash book balance

Dear Student,
Bill Discounted and Dishonoured: In case opening balance of Cash Book is given, the amount of bill discounted and dishonoured would be deducted. This is because dishonour of bill results in decrease in balance of Pass Book, however, no record is made in the Cash Book. As a result the balance of Cash Book is more. Hence, it would be subtracted from the balance of Cash Book to bring it at par with balance of Pass Book.

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