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CA Foundation · Accounting · Bank Reconciliation Statement

The cash book of Kapoor Traders shows a bank balance of ₹40,000 (debit) before adjustment. The pass book shows a direct deposit of ₹6,000 by a customer, not yet recorded in the cash book, and interest of ₹500 on bank balance credited by the bank. Bank charges of ₹800 were debited by the bank, also not recorded. What is the adjusted cash book balance?

The adjusted cash book balance is ₹45,700. Adding the direct deposit of ₹6,000 and interest of ₹500 to ₹40,000 gives ₹46,500, and deducting bank charges of ₹800 leaves ₹45,700 as the correct debit balance.

  1. A₹45,700Correct
  2. B₹44,300
  3. C₹46,300
  4. D₹45,200

Explanation

Start with ₹40,000 and add direct deposit ₹6,000 and interest ₹500 to get ₹46,500. Deduct bank charges ₹800 to get ₹45,700. The distractor ₹46,300 arises from adding the charges instead of deducting them wrongly mixed with the interest, and ₹44,300 from subtracting the deposit and interest.

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