When starting balance is debit, i.e., favourable balance as per cash book, identify which of the following transactions will be added?
Wrong credit granted by the bank
The correct answer is option 1. When the starting balance is debit (favourable balance), wrong credit granted by the bank will be added. This is because the incorrect credit from the bank increases the cash book balance, and it needs to be adjusted. The other options do not increase the cash balance in the way described. For example, a cheque recorded but not deposited would not affect the cash balance until it is deposited, and a bill of exchange dishonoured would decrease the cash balance.
Important Questions from Bank Reconciliation statement
A credit balance in the bank passbook indicates a/an ___________ balance and a debit balance in the cash book indicates a/an ____________ balance.
Mr. A draws a 6-month trade bill on B for Rs. 25,000 on 1 January 2021. After holding the bill for 2 months. A decided to discount the bill with the bank at the rate of 10% p.a. The amount of discount on the bill is ______________ approximately (select the answer with the closest value).
When Bank Reconciliation Statement is started with favourable balance as per cash book, which of the following will be added?
The objective of preparing a Bank Reconciliation Statement is to ______.
If the balance as per Cash Book is Rs.5,800; cheques amounting to Rs.2,000 are issued but not yet presented; cheques of Rs.1,500 sent for collection, but not yet collected, and an amount of Rs.200 is wrongly debited by the bank, what will be the balance as per Pass Book?
