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CSEET · Fundamentals of Accounting · Bank Reconciliation Statement

Mehta Traders' cash book shows a bank balance of ₹48,000 (debit). Cheques issued for ₹7,000 have not been presented, and cheques deposited for ₹4,000 have not yet been collected by the bank. No other differences exist. What is the balance as per the pass book?

The pass book balance is ₹51,000. Starting from the cash book balance of ₹48,000, add ₹7,000 of unpresented issued cheques and deduct ₹4,000 of deposited cheques not yet collected, giving 48,000 + 7,000 − 4,000 = ₹51,000 as per the bank.

  1. A₹51,000Correct
  2. B₹45,000
  3. C₹55,000
  4. D₹59,000

Explanation

Start with the cash book balance of ₹48,000. Add the unpresented cheques issued (₹7,000), as the bank has not deducted them: 55,000. Deduct the uncollected deposited cheques (₹4,000), as the bank has not credited them: 51,000. Adding both (₹59,000) or reversing the signs (₹45,000) is wrong.

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