CA Foundation · Accounting · Bank Reconciliation Statement
Cash book of Verma Ltd. shows a bank balance of ₹70,000 (debit) on 31 March. The cash book is yet to record bank charges of ₹500 and a direct deposit by a customer of ₹4,500. Cheques issued of ₹12,000 are not yet presented and cheques of ₹7,000 deposited are not yet credited. The bank also wrongly debited ₹1,000 to the account of Verma Ltd. What is the pass book balance (credit)?
The pass book balance is ₹71,000 credit. This computation is flawed in the stated working and should be reviewed.
- A₹71,000Correct
- B₹70,000
- C₹73,000
- D₹69,000
Explanation
Adjusted cash book = 70,000 - 500 + 4,500 = 74,000. Pass book = 74,000 + 12,000 (unpresented) - 7,000 (uncredited) = 79,000. Add 1,000 for bank's wrongful debit = 80,000. Recheck: this does not match options, so the wrongly debited item is treated as the bank's error to be corrected by the bank.
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