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CSEET · Fundamentals of Accounting · Bank Reconciliation Statement

Gupta Enterprises recorded a cheque received from a customer for ₹7,600 on the debit side of the cash book as ₹6,700. The cheque was deposited and cleared by the bank at ₹7,600. The cash book balance before correction was ₹30,000 debit. What is the corrected cash book balance?

The corrected cash book balance is ₹30,900 debit. The receipt was recorded ₹900 short on the debit side, so adding the ₹900 difference to the earlier ₹30,000 debit balance gives the corrected figure.

  1. A₹30,900 debitCorrect
  2. B₹29,100 debit
  3. C₹30,000 debit
  4. D₹37,600 debit

Explanation

The receipt was understated by 7,600 - 6,700 = 900 on the debit side. Correcting increases the debit balance: 30,000 + 900 = ₹30,900. Subtracting 900 would be a wrong-sign error.

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