PRC-1 · Chapter 9 · Question 18 of 100
If a BRS starts with a favorable (debit) balance as per the Cash Book, how are unpresented cheques treated to arrive at the bank statement balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) They are added.
Explanation
Unpresented cheques have already been deducted in the cash book, lowering its balance. Since the bank has not yet deducted them, the bank's balance is higher. Therefore, they must be added to the cash book balance to reconcile to the bank statement.
More Bank Reconciliations MCQs
- Q20When preparing an adjusted cash book, which of the following will decrease the cash book balance?
- Q21A cheque of Rs. 45,000 received from a customer was deposited but returned unpaid by the bank due to insufficient funds. What is the…
- Q22Which of the following is NOT a cause for a difference between the cash book and bank statement balances?
- Q23A cheque issued to a supplier for Rs. 5,000 was recorded in the cash book but completely omitted from the bank statement up to the period…
- Q24The payment side of the cash book was under-casted by Rs. 2,000. To correct this error, the accountant must: