Skip to content

CA Foundation · Accounting · Bank Reconciliation Statement

The cash book of Kapoor Traders shows a bank balance of ₹56,000 (debit). On comparing with the pass book, it is found that the bank has charged ₹700 as bank charges and collected a customer's direct deposit of ₹4,200, and neither is recorded in the cash book. The adjusted cash book balance is:

The adjusted cash book balance is ₹59,500. The direct deposit of ₹4,200 increases the balance and the bank charges of ₹700 reduce it, so 56,000 plus 4,200 minus 700 gives ₹59,500.

  1. A₹59,500Correct
  2. B₹60,900
  3. C₹51,100
  4. D₹52,500

Explanation

Start with ₹56,000. Add the direct deposit of ₹4,200 to get ₹60,200. Deduct bank charges of ₹700 to get ₹59,500. The option ₹60,900 adds the charges instead of deducting them, which is the wrong sign.

Did you get it right without looking?

One question tells you little. A timed set on Bank Reconciliation Statement shows your real accuracy, how long you take and where you lose marks.

Practise Bank Reconciliation StatementFree diagnostic mock

More Bank Reconciliation Statement questions