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CA Foundation · Accounting · Bank Reconciliation Statement

The pass book of Kapoor Traders shows a balance of ₹40,000 (credit) on 31 March. Cheques issued but not presented by 31 March are ₹6,000 and cheques deposited but not yet credited are ₹9,000. What is the cash book balance on 31 March?

The cash book balance is ₹37,000 debit. From the pass book balance of ₹40,000, deduct deposits not yet credited of ₹9,000 and add back cheques issued but not presented of ₹6,000, because the cash book already reflects both items.

  1. A₹43,000 (debit)Correct
  2. B₹37,000 (debit)
  3. C₹55,000 (debit)
  4. D₹25,000 (debit)

Explanation

Cash book balance = 40,000 + 9,000 (deposited, not credited, already in cash book) - 6,000 (issued, not presented, already in cash book)? Correctly: start from pass book 40,000, deduct uncredited deposits 9,000 (bank hasn't credited) giving 31,000, add unpresented cheques 6,000 giving 37,000. Hence the answer is 37,000.

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