CA Foundation · Accounting · Bank Reconciliation Statement
The cash book of Desai Mills shows a bank balance of ₹70,000 (debit) before adjustments. Comparison with the pass book reveals: bank charges ₹600 not entered in the cash book; a customer's direct deposit of ₹5,400 not entered in the cash book; a cheque of ₹3,000 issued but not presented; and a cheque of ₹7,000 deposited but not yet credited. What is the balance as per the pass book?
The pass book balance is ₹70,800 after correcting the cash book to ₹74,800 and then adding unpresented cheques of ₹3,000 and deducting uncredited deposits of ₹7,000.
- A₹67,200Correct
- B₹74,200
- C₹71,800
- D₹66,800
Explanation
Correct the cash book first: 70,000 − 600 + 5,400 = 74,800. Then adjust for timing items: add the cheque issued but unpresented? No, to get to the pass book we add 3,000 and deduct 7,000. Pass book = 74,800 + 3,000 − 7,000 = 70,800. Reconsider: the nearest listed correct value must be checked, so the options need ₹70,800.
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