PRC-1 · Chapter 9 · Question 45 of 100
When the bank statement contains an error whereby a cheque of Rs. 1,000 issued by another company was mistakenly debited to your account, the correction in the BRS (starting with the cash book balance) would be to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Deduct Rs. 1,000.
Explanation
To reconcile from the accurate cash book to the erroneous bank statement, you must mimic the bank's error in the BRS. Since the bank wrongly deducted 1,000, you deduct 1,000 in the BRS.
More Bank Reconciliations MCQs
- Q47If a business decides to adjust its cash book before preparing the BRS, which of the following items will ONLY appear in the BRS?
- Q48The bank reconciliation statement is best described as:
- Q49What is the correct journal entry for a bank charge of Rs. 500 recorded in the bank statement but missed in the cash book?
- Q50A payment of Rs. 1,200 was recorded in the cash book as Rs. 2,100. What is the correcting entry in the cash book?
- Q51Which of the following correctly describes an unfavorable (overdraft) balance in the cash book?