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CMA Foundation · Fundamentals of Financial and Cost Accounting · Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement

A trader's cash book (bank column) shows a debit balance of Rs 48,000. On comparing with the bank statement, he finds that a cheque of Rs 5,000 deposited by him has not yet been credited by the bank. What is the balance as per the bank statement, assuming this is the only difference?

The bank statement balance is Rs 43,000 credit. A deposited cheque not yet collected is already added in the cash book but not yet by the bank, so the passbook balance is lower than the cash book balance by Rs 5,000.

  1. ARs 53,000 credit
  2. BRs 43,000 debit
  3. CRs 43,000 creditCorrect
  4. DRs 53,000 debit

Explanation

Cash book shows a favourable balance of Rs 48,000. The cheque deposited but not yet collected has been added in the cash book but not by the bank. So bank statement balance = 48,000 - 5,000 = Rs 43,000, which is a credit balance in the bank's books. Adding 5,000 gives 53,000, which wrongly treats the cheque as already credited by the bank.

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