PRC-1 · Chapter 9 · Question 59 of 100
A bank statement shows a credit (favorable) balance of Rs. 45,200. Outstanding (unpresented) cheques are Rs. 11,500, and uncleared lodgements are Rs. 13,100. Assuming no other errors, what is the correct balance as per the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 46,800 (Debit)
Explanation
Formula: CB + Unpresented - Uncredited = Bank. CB + 11,500 - 13,100 = 45,200. Therefore, CB = 45,200 - 11,500 + 13,100 = Rs. 46,800 (Debit/Favorable).
More Bank Reconciliations MCQs
- Q61If the payment side of the cash book is found to be under-casted, what is the correcting entry in the cash book?
- Q62A time-barred (stale) cheque of Rs. 145,540, previously issued to a supplier 8 months ago, is discovered. How should it be treated?
- Q63A cheque of Rs. 50,000 issued to a supplier was mistakenly recorded twice on the payment side of the cash book. What is the correcting…
- Q64Which of the following correctly defines an 'unpresented cheque'?
- Q65Which of the following correctly defines 'uncleared lodgements'?