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CA Foundation · Accounting · Bank Reconciliation Statement

The cash book of Deshmukh Stores shows an overdraft of ₹18,000. The pass book shows an overdraft of ₹21,500. The only differences are cheques issued of ₹6,000 not yet presented and a cheque of ₹X deposited but not yet credited. The value of X is:

X is ₹9,500. Reducing the pass book overdraft of ₹21,500 by the deposited but uncredited cheque of ₹9,500 gives ₹12,000, and adding the unpresented issued cheques of ₹6,000 gives ₹18,000, which equals the cash book overdraft.

  1. A₹9,500Correct
  2. B₹2,500
  3. C₹3,500
  4. D₹6,000

Explanation

Use the pass book overdraft as a negative: -21,500. The uncleared issued cheques of ₹6,000 are added back, giving -15,500. The uncredited deposited cheque X must be added to reach the cash book: -15,500 + X = -18,000 would give a negative X, so recheck. Working from the cash book: -18,000 + 6,000 = -12,000 becomes the pass book balance before the deposit adjustment. The pass book is -21,500, which is ₹9,500 lower, so the deposited cheque X is ₹9,500. Check: cash book -18,000 less ₹6,000 uncleared issued... Taking pass book overdraft 21,500 less 9,500 deposited uncredited gives 12,000, plus the cheques issued 6,000 gives 18,000, which matches the cash book overdraft.

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