CA Foundation · Accounting · Bank Reconciliation Statement
Mehra Stores' cash book shows a bank balance of ₹18,000 (debit). The bank has collected a customer's cheque of ₹3,000 which the firm has not recorded, and has debited ₹400 as charges which the firm has not recorded. What is the correct bank balance after adjusting the cash book?
The adjusted cash book balance is ₹20,600. The direct collection of ₹3,000 is added, and the bank charges of ₹400 are deducted from the original balance of ₹18,000, because both items are in the pass book but missing from the cash book.
- A₹20,600Correct
- B₹21,400
- C₹21,000
- D₹14,600
Explanation
The direct collection increases the balance and the charges reduce it. Adjusted balance = 18,000 + 3,000 − 400 = ₹20,600. Option 2 wrongly adds the charges, and option 4 wrongly subtracts the collection.
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