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CSEET · Fundamentals of Accounting · Bank Reconciliation Statement

On 31 March, the cash book of Sharma & Co. showed a bank balance of ₹42,000 (debit). The firm found that a cheque for ₹5,000 issued by it had not yet been presented, and a cheque for ₹7,000 deposited by it had not yet been credited by the bank. No other differences exist. The balance as per the passbook is:

The passbook balance is ₹40,000. Starting from the cash book balance of ₹42,000, add the unpresented cheque issued of ₹5,000 and deduct the deposited cheque not yet credited of ₹7,000, which gives ₹40,000.

  1. A₹44,000Correct
  2. B₹40,000
  3. C₹54,000
  4. D₹30,000

Explanation

Start with the cash book balance of ₹42,000. Add back the unpresented cheque issued (₹5,000) since the bank has not yet debited it: 47,000. Deduct the uncredited deposited cheque (₹7,000) since the bank has not yet credited it: 40,000. So the passbook balance is ₹40,000. Hence the key must be ₹40,000, not ₹44,000.

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