CSEET · Fundamentals of Accounting · Bank Reconciliation Statement
A firm's cash book shows a bank balance of ₹30,000 (debit). A cheque of ₹2,500 received from a customer was deposited and recorded, but was dishonoured and the bank debited it, with no entry in the cash book. What is the adjusted cash book balance?
The adjusted cash book balance is ₹27,500. The dishonoured customer cheque of ₹2,500 was debited by the bank but not recorded in the cash book, so the bank column must be credited, reducing ₹30,000 to ₹27,500, and the customer is debited again.
- A₹27,500Correct
- B₹32,500
- C₹30,000
- D₹25,000
Explanation
A dishonoured cheque reduces the bank balance. The cash book must be credited by ₹2,500, giving 30,000 − 2,500 = ₹27,500. Adding it would be the wrong sign, and ignoring it leaves the cash book overstated.
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