Match List – I with List – II.

Choose the correct answer from the options given below :

A-III, B-IV, C-II, D-I

The correct answer is option 3- A-III, B-IV, C-II, D-I.

* Unfavourable bank balance- Credit balance in passbook. An unfavorable bank balance typically refers to a situation where the balance shown in the bank passbook (bank statement) is a credit balance.

* Favourable bank balance- Debit balance in the cash book. A favorable bank balance refers to a situation where the balance shown in the cash book (company's records) is a debit balance.

* Bank charges of ₹400- Deduct from balance as per cash book. It is deducted from the balance of cash book as bank has already deduct this amount.

* Bank directly collected dividend of ₹8,000- Add in Balance as per cash book. It is added in the balance of cash book as bank has already added this amount.