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CA Foundation · Accounting · Bank Reconciliation Statement

The pass book of Menon & Co. shows a balance of ₹60,000 (credit) on 10 April. Cheques of ₹12,000 deposited on 30 March were credited on 3 April, and cheques of ₹5,000 issued on 29 March were presented on 6 April. What was the pass book balance on 31 March?

The pass book balance on 31 March was ₹53,000. Starting from ₹60,000 on 10 April, subtract the later credit of ₹12,000 and add back the later debit of ₹5,000, because both entries were made by the bank after 31 March.

  1. A₹53,000Correct
  2. B₹77,000
  3. C₹67,000
  4. D₹43,000

Explanation

Reverse the later transactions. Remove the 3 April credit of ₹12,000: 60,000 - 12,000 = 48,000. Add back the 6 April debit of ₹5,000: 48,000 + 5,000 = 53,000. Check forward: 53,000 + 12,000 - 5,000 = 60,000. The distractor 67,000 comes from wrong signs on both items.

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