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CMA Foundation · Fundamentals of Financial and Cost Accounting · Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement

The pass book of Iyer Brothers shows a credit balance of ₹25,000. Cheques deposited of ₹6,000 have not been credited by the bank, and cheques issued of ₹4,000 have not been presented. What is the cash book balance (debit)?

The cash book balance is ₹27,000 debit. Starting with the pass book credit balance of ₹25,000, add the uncredited deposits of ₹6,000 and deduct the unpresented cheques of ₹4,000, because the cash book has already recorded both.

  1. A₹27,000Correct
  2. B₹23,000
  3. C₹35,000
  4. D₹15,000

Explanation

From the pass book balance, add deposits not yet credited (6,000) because the cash book has already recorded them: 31,000. Deduct cheques issued but not presented (4,000), because the cash book has already reduced for them: 27,000. Working backward: 27,000 + 4,000 - 6,000 = 25,000, which matches the pass book. A wrong sign on both items gives 23,000.

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