A company wrote a cheque for Rs 760 and it cleared the bank for Rs 670. However, the company recorded the cheque in its cash book as Rs 760. How is the difference of Rs 90 handled on the bank reconciliation?

Not entered as it only affects the bank statement

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Debit the bank statement

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Credit the cash book by Rs 90

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Debit the cash book by Rs 90

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Solution

The correct option is D
Debit the cash book by Rs 90

Cash book shall be debited by Rs 90 to increase its balance and make it equal to bank pass book.

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Similar questions

On 31^st December, 2010, the Bank Pass Book of Amruta and company showed on overdraft of. 2,560. On comparing the pass Book with the Cash Book following points were observed.

(i) Bank debited Rs 20 for Bank charges and Rs 120 for interest on overdraft, these were not recorded in the Cash Book.

(ii) Cheques of Rs 1,100, Rs 930 and Rs 1,560 deposited into the Bank but out of these only cheque of Rs 1,100 Credited by Bank before 31st December 2010.

(iii) On Customer directly deposited Rs 500 in Company’s Bank A/c, but is out recorded in the Cash Book

(iv) On 20^th December 2010, cheques of Rs 820, Rs 530 and Rs 760 were issued but cheque of Rs 760 was paid before 31^stDecember, 2010 and other cheques were paid on 3^rd January 2011.

Prepare bank reconciliation statement of Shri Bhandari as on December 31, 2010

(i) The Payment of a cheque for Rs. 550 was recorded twice in the passbook.

(ii) Withdrawal column of the passbook undercast by Rs. 200.

(iii) A cheque of Rs. 200 has been debited in the bank column of the cash book but it was not sent to the bank at all.

(iv) A cheque of Rs. 300 debited to bank column of the cash book was not sent to the bank.

(v) Rs. 500 in respect of dishonoured cheque were entered in the pass book but not in the cash book.

Overdraft as per pass book is Rs. 20,000.

Q. Prepare bank reconciliation statement of Shri Bhandari as on March 31, 2017

(i)	The Payment of a cheque for Rs 550 was recorded twice in the passbook.
(ii)	Withdrawal column of the passbook under cast by Rs 200
(iii)	A Cheque of Rs 200 has been debited in the bank column of the Cash Book but it was not sent to bank at all.
(iv)	A Cheque of Rs 300 debited to Bank column of the cash book was not sent to the bank.
(v)	Rs 500 in respect of dishonoured cheque were entered in the passbook but not in the cash book. Overdraft as per passbook is Rs 20,000.

Q. Prepare bank reconciliation statement of Shri Bhandari as on December 31, 2010
i) The payment of a cheque for Rs.550 was recorded twice in the pass book.
ii) Withdrawal column of the pass book under cast by Rs.200.
iii) A Cheque of Rs.200 has been debited in the bank column of the cash book but it was not sent to bank at all.
iv) A cheque of Rs.300 debited to bank column of the pass book was not sent to the bank.
v) Rs. 500 in respect of dishonored cheque were entered in the pass book but not in the cash book.
Overdraft as per pass book is Rs. 20,000.

Farkhanda Jabeen Ltd. receives a cheque for Rs. 100, records it in cash book and deposits it on the same day. A statement sent by the bank that day does not show Rs. 100. How is this shown on the bank reconciliation statement if starting point is pass book?

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A company wrote a cheque for Rs 760 and it cleared the bank for Rs 670. However, the company recorded the cheque in its cash book as Rs 760. How is the difference of Rs 90 handled on the bank reconciliation?

The correct option is D Debit the cash book by Rs 90 Cash book shall be debited by Rs 90 to increase its balance and make it equal to bank pass book.

The correct option is D
Debit the cash book by Rs 90

Cash book shall be debited by Rs 90 to increase its balance and make it equal to bank pass book.