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CA Foundation · Accounting · Bank Reconciliation Statement

The pass book of Rao & Co. shows a balance of ₹36,000 (credit) on 31 March. Cheques issued but not presented by 31 March are ₹8,000, and cheques deposited but not credited are ₹5,000. What is the cash book balance on 31 March?

The cash book balance is ₹39,000 debit. From the pass book figure of ₹36,000, subtract ₹5,000 of deposits not yet credited by the bank and add ₹8,000 of cheques issued but not yet presented, because the cash book has already recorded both.

  1. A₹39,000 (debit)Correct
  2. B₹33,000 (debit)
  3. C₹49,000 (debit)
  4. D₹23,000 (debit)

Explanation

Start with the pass book 36,000. Deduct uncredited deposits 5,000 to get 31,000. Add unpresented cheques 8,000 to get 39,000. Option 33,000 would reverse both adjustments.

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