Skip to content

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

Gupta & Co's cash book shows a bank balance of Rs 36,500 (debit). The bank statement shows direct credit of customer receipt Rs 6,000 and bank charges of Rs 400 not yet recorded in the cash book. What is the corrected cash book balance?

The corrected cash book balance is Rs 42,100. The direct customer credit of Rs 6,000 is added and the bank charges of Rs 400 are deducted from the existing Rs 36,500 balance, because both items appear in the bank statement but not in the cash book.

  1. ARs 42,100Correct
  2. BRs 42,900
  3. CRs 30,900
  4. DRs 30,100

Explanation

Direct credit by the bank increases the cash book balance: 36,500 + 6,000 = 42,500. Bank charges reduce it: 42,500 - 400 = 42,100. Rs 42,900 wrongly adds the charges instead of deducting them.

Did you get it right without looking?

One question tells you little. A timed set on Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement shows your real accuracy, how long you take and where you lose marks.

Practise Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation StatementFree diagnostic mock

More Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement questions