Skip to content

CSEET · Fundamentals of Accounting · Bank Reconciliation Statement

The cash book of Sharma Traders shows a bank balance of ₹40,000 (debit). Cheques issued of ₹6,000 have not been presented, and cheques deposited of ₹4,000 have not been cleared. No other differences exist. What is the balance as per the pass book?

The pass book balance is ₹42,000. Starting with the cash book balance of ₹40,000, add ₹6,000 of issued cheques not yet presented and subtract ₹4,000 of deposited cheques not yet collected, since the bank has not yet reflected either item.

  1. A₹38,000
  2. B₹42,000Correct
  3. C₹50,000
  4. D₹30,000

Explanation

Starting from the cash book: 40,000 + unpresented cheques issued 6,000 (bank has not yet deducted them) − uncleared deposits 4,000 (bank has not yet added them) = 42,000. Adding both items gives 50,000, which wrongly treats the uncleared deposits as additions.

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