PRC-1 · Chapter 9 · Question 34 of 100
The adjusted Cash Book balance is Rs. 15,000 (Debit). The bank incorrectly credited the business account with Rs. 2,000. Unpresented cheques are Rs. 4,000. What is the Bank Statement balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 21,000 (Credit/Favorable)
Explanation
CB (Favorable) + Unpresented + Bank Error (wrongly credited/added by bank) = Bank Statement Balance. 15,000 + 4,000 + 2,000 = Rs. 21,000. Since it's positive, it is a Credit (Favorable) balance on the bank statement.
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