PRC-1 · Chapter 9 · Question 75 of 100
A cheque of Rs. 2,500 was issued to a supplier and correctly recorded in the cash book. It was presented to the bank but cleared as Rs. 5,200 due to a bank error. In the BRS (starting from the cash book balance), this should be:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Deducted as Rs. 2,700
Explanation
The bank mistakenly deducted an extra Rs. 2,700 (5,200 - 2,500). To reconcile from the correct cash book to the incorrect bank statement, you must deduct the excess Rs. 2,700 in the BRS.
More Bank Reconciliations MCQs
- Q77An unpresented cheque is generally considered valid for how long before it becomes 'stale' and requires reversal in the cash book?
- Q78When reconciling from the bank statement balance to the cash book balance, which of the following items is ADDED?
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- Q81The bank column of a cash book showed a debit balance of Rs. 12,000. Unpresented cheques were Rs. 4,000. Uncleared lodgements were Rs…