Question

Bank column of cash book showed bank balance of $Rs.9950$. While reconciling the bank balance it was noticed that a cheque issued and paid by the bank $Rs.5100$ was wrongly shown on the debit side of bank column as $Rs.510$, bank charges amounting to $Rs.210$, LIC payment of $Rs.1200$ made by the bank as per standing instruction were not accounted in the cash book. Find the adjusted balance of cash as per cash book.

• A. $Rs.5400$
• B. $Rs.3240$
• C. $Rs.3150$
• D. $Rs.2930$

Answer 1

The correct option is D $Rs.2930$

The adjusted balance as per cash book is as follows :

	Particulars	Amt in Rs.
	Bank balance as per cash book	$9950$
Add	Wrong cheque amount debited	$510$
Less	Correct cheque amount issued	$5100$
Less	Bank charges	$210$
Less	LIC payment made by bank on standing instruction	$1200$
	Adjusted balance as per cash book	$2930$