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CMA Foundation · Fundamentals of Financial and Cost Accounting · Cash Book, Bank Book, Petty Cash Book, 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. A cheque for ₹8,000 deposited on 30 March has not yet been credited by the bank. What is the balance as per the pass book?

The pass book balance is ₹45,000 in favour of the firm. Add the unpresented cheque of ₹5,000 to the cash book balance of ₹48,000, then deduct the uncredited deposit of ₹8,000, because the bank has not yet recorded either item.

  1. A₹51,000 (credit)
  2. B₹45,000 (debit)
  3. C₹51,000 (debit)Correct
  4. D₹45,000 (credit)

Explanation

Start with the cash book balance of ₹48,000 (debit). Add the unpresented cheque of ₹5,000, since the bank has not yet deducted it: 53,000. Deduct the uncredited deposit of ₹8,000, since the bank has not yet added it: 45,000. Check the direction: the pass book is the bank's record, so 48,000 + 5,000 - 8,000 = 45,000. The correct pass book balance is therefore ₹45,000 in favour of the firm. Option 'Rs 45,000 (debit)' is the label of the cash book view, so the key must read carefully: the pass book shows a credit balance of 45,000 from the bank's side.

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