PRC-1 · Chapter 9 · Question 44 of 100
A bank statement shows an overdraft of Rs. 15,000. Unpresented cheques amount to Rs. 6,000. There are no other reconciling items. What is the cash book balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 21,000 (Overdraft)
Explanation
Bank Balance (-15,000) - Unpresented cheques (-6,000) = Cash Book Balance (-21,000). The cash book shows a larger overdraft because the payments have been deducted internally but not yet by the bank.
More Bank Reconciliations MCQs
- Q46Which of the following best describes 'uncleared lodgments'?
- 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?