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CSEET · Fundamentals of Accounting · Bank Reconciliation Statement

Overdraft as per the cash book of Kapoor & Co. is ₹15,000. Cheques issued of ₹9,000 are unpresented, cheques deposited of ₹6,000 are not yet credited by the bank, and the bank has directly collected a customer's payment of ₹5,000 not recorded in the cash book. What is the overdraft as per the pass book?

The overdraft as per the pass book is ₹7,000. Starting from −15,000, add unpresented issued cheques of 9,000, deduct 6,000 for deposited cheques not yet credited, and add 5,000 collected directly by the bank: −15,000 + 9,000 − 6,000 + 5,000 = −7,000.

  1. A₹13,000 overdraftCorrect
  2. B₹17,000 overdraft
  3. C₹7,000 overdraft
  4. D₹23,000 overdraft

Explanation

Treat overdraft as a negative balance: −15,000. Add unpresented cheques issued: −6,000. Deduct deposited cheques not yet credited: −12,000. Add the direct collection by the bank: −7,000... check the sign: the cheque deposited uncollected reduces the pass book, so −6,000 − 6,000 = −12,000, and +5,000 gives −7,000. So the overdraft is ₹7,000.

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