CA Foundation · Accounting · Bank Reconciliation Statement
Gupta & Sons has an overdraft of ₹20,000 as per cash book on 31 December. Cheques of ₹6,000 issued have not been presented, and cheques of ₹9,000 deposited have not been cleared. What is the overdraft as per pass book?
The overdraft as per pass book is ₹23,000. Starting from the cash book overdraft of ₹20,000, unpresented issued cheques reduce the bank's overdraft by ₹6,000, while uncleared deposited cheques increase it by ₹9,000, because the bank has not yet credited them.
- A₹23,000Correct
- B₹17,000
- C₹35,000
- D₹5,000
Explanation
Start with the cash book credit balance of ₹20,000 (overdraft). Unpresented cheques of ₹6,000 mean the bank has not yet debited them, so the pass book overdraft is lower by 6,000. Uncleared deposits of ₹9,000 mean the bank has not yet credited them, so the pass book overdraft is higher by 9,000. Overdraft = 20,000 − 6,000 + 9,000 = ₹23,000. Reversing the signs gives ₹17,000.
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