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CA Foundation · Accounting · Bank Reconciliation Statement

Rao Stores' cash book shows a bank balance of ₹36,000 (debit) before adjustments. Comparison with the pass book reveals: bank charges ₹300 not entered in the cash book; a cheque of ₹6,000 issued but not presented; interest of ₹900 credited by the bank not in the cash book; a cheque of ₹2,500 deposited but not yet credited. What is the balance as per the pass book?

The balance as per the pass book is ₹40,100. Adjusted cash book is 36,000 - 300 + 900 = 36,600; adding unpresented cheques of ₹6,000 and deducting uncredited deposits of ₹2,500 gives ₹40,100.

  1. A₹39,100Correct
  2. B₹40,100
  3. C₹36,600
  4. D₹42,100

Explanation

Adjust the cash book first: 36,000 - 300 + 900 = 36,600. Then pass book = 36,600 + unpresented issued 6,000 - uncredited deposit 2,500 = 40,100. Check backwards: 40,100 - 6,000 + 2,500 = 36,600, which matches the adjusted cash book. So the correct pass book balance is 40,100; 39,100 wrongly ignores part of the adjustments.

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