CA Foundation · Accounting · Bank Reconciliation Statement
The cash book of Iyer Traders shows a bank balance of ₹25,000 (debit) before adjustment. The pass book shows bank charges of ₹300 and a direct deposit by a customer of ₹4,500 that are not yet in the cash book. What is the adjusted cash book balance?
The adjusted cash book balance is ₹29,200. Start with ₹25,000, add the customer's direct deposit of ₹4,500 and deduct bank charges of ₹300. Both items were recorded by the bank but not by the business, so both must be adjusted.
- A₹29,200Correct
- B₹29,700
- C₹20,800
- D₹30,200
Explanation
Adjusted balance = 25,000 + 4,500 (direct deposit, increases the bank balance) - 300 (charges, decreases it) = ₹29,200. Option ₹30,200 is wrong because it adds the charges instead of deducting them. Option ₹29,700 ignores the charges... wait, it adds only 4,500+... incorrectly; the correct figure is ₹29,200.
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