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CA Foundation · Accounting · Bank Reconciliation Statement

On 31 March, the pass book of Kapoor Traders shows a credit balance of ₹40,000. Cheques issued of ₹6,000 have not yet been presented for payment, and cheques deposited of ₹9,000 have not yet been collected by the bank. No other differences exist. What is the balance as per the cash book?

The cash book balance is ₹37,000 debit. Starting from the pass book's ₹40,000, add back the unpresented cheques of ₹6,000 and deduct the uncollected deposited cheques of ₹9,000, because the cash book has already recorded both items but the bank has not.

  1. A₹43,000 (debit)Correct
  2. B₹37,000 (debit)
  3. C₹55,000 (debit)
  4. D₹25,000 (debit)

Explanation

Start with the pass book balance of ₹40,000 (favourable). Add the cheques issued but not presented (₹6,000), since the bank has not yet deducted them: 46,000. Deduct the cheques deposited but not collected (₹9,000), since the bank has not yet credited them: 37,000. Hence the cash book balance is ₹37,000, which is wrong to be shown as 43,000; check: cash book 37,000 + 9,000 uncollected - 6,000 unpresented = 40,000. Correct answer is ₹37,000 (debit).

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