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CA Foundation · Accounting · Bank Reconciliation Statement

On 31 March, the cash book of Sharma Traders shows a bank balance of ₹48,000 (debit). A cheque for ₹5,000 issued to a supplier has not yet been presented for payment. What would the pass book balance be, other factors ignored?

The pass book balance is ₹53,000. The cheque issued has already reduced the cash book balance, but the bank has not yet paid it, so the bank still shows the money. Adding ₹5,000 to the cash book balance of ₹48,000 gives the pass book figure.

  1. A₹43,000
  2. B₹53,000Correct
  3. C₹48,000
  4. D₹5,000

Explanation

A cheque issued but not yet presented has been credited in the cash book but not yet debited in the pass book. So the pass book balance is higher than the cash book balance. Pass book balance = 48,000 + 5,000 = ₹53,000. Subtracting gives ₹43,000, which is the common mistake of treating the cheque as deducted twice.

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