PRC-1 · Chapter 9 · Question 93 of 100
If the adjusted cash book shows an overdraft of Rs. 4,000, and uncredited cheques amount to Rs. 3,000, what is the bank statement balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 7,000 (Overdraft)
Explanation
Formula: CB - Uncredited = Bank. -4,000 - 3,000 = -7,000. This translates to a bank overdraft of Rs. 7,000.
More Bank Reconciliations MCQs
- Q95In the context of a multiple-column cash book, a 'contra entry' represents:
- Q96Which of the following is the correct double entry for recording cash deposited into the bank?
- Q97If a cheque received from a customer is deposited into the bank on the same day, what is the initial double entry?
- Q98To adjust for a cheque that was returned marked 'NSF' (Not Sufficient Funds) by the bank, the accountant must:
- Q99What does the letter 'C' in the folio column of a cash book indicate?