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CA Foundation · Accounting · Bank Reconciliation Statement

The cash book of Kapoor Enterprises shows an overdraft of ₹12,000. Cheques deposited of ₹9,000 are not yet credited by the bank, cheques issued of ₹6,500 are not yet presented, and the bank has charged interest of ₹800 not entered in the cash book. The overdraft as per pass book is:

The pass book overdraft is ₹15,300. Interest of ₹800 raises the cash book overdraft to ₹12,800. Uncredited deposits of ₹9,000 add to the bank's overdraft figure, and unpresented cheques of ₹6,500 reduce it, giving ₹15,300.

  1. A₹14,300Correct
  2. B₹12,800
  3. C₹9,300
  4. D₹15,300

Explanation

First adjust cash book for interest: overdraft 12,000 + 800 = 12,800. Then, as overdraft, deposited-not-credited cheques increase the pass book overdraft (+9,000) and issued-not-presented cheques reduce it (−6,500). 12,800 + 9,000 − 6,500 = 15,300. Check: the pass book overdraft is 15,300, and the interest is already included in the adjusted figure.

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