CSEET · Fundamentals of Accounting · Bank Reconciliation Statement
On 31 March, the cash book of Sharma Traders shows a bank balance of ₹48,000 (debit). A cheque of ₹5,000 deposited was dishonoured and the bank has debited the account, but the cash book has not yet recorded it. What is the balance in the cash book after this adjustment?
The adjusted cash book balance is ₹43,000 debit. A cheque dishonoured by the bank reduces the bank balance, and the cash book has not yet recorded this, so the 5,000 must be deducted from the 48,000 balance shown in the cash book.
- A₹53,000 debit
- B₹43,000 debitCorrect
- C₹48,000 debit
- D₹5,000 debit
Explanation
A dishonoured cheque reduces the bank balance, but the cash book has not yet recorded the reduction. The adjusted cash book balance is 48,000 - 5,000 = ₹43,000 debit. Adding 5,000 would be the wrong-sign error.
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