Cheques deposited in bank may not be available for immediate use due to ____________.

payment float

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receipt float

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net float

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playing float

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Solution

The correct option is B receipt float
Receipt Float is a time gap between the cheque deposited date and date of cash collection in the bank. There will be clearing time of cheque, hence the amount of cheque cannot be available for immediate use due to receipt float.

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Similar questions

Kumar finds that the bank balance shown by his cash book on December 31, 2010, is Rs. 90,600 (Credit) but the pass book shows a difference due to the following reason

A cheque (post dated) for Rs. 1,000 has been debited in the bank column of the cash book but not presented for payment. Also, a cheque for Rs. 8,000 drawn in favour of Manohar has not yet been presented for payment. Cheques totalling Rs. 1,500 deposited in the bank have not yet been collected and a cheque for Rs. 5,000 has been dishonoured.

Q. From the following information, prepare Bank Reconciliation Statement as on 31st March, 2019:

		₹
(i)	Bank overdraft as per Pass Book.	36,000
(ii)	Cheques issued but not presented for payment.	19,700
(iii)	Cheques deposited with bank but not collected.	25,000
(iv)	Cheques entered in Cash Book but not banked.	9,000
(v)	Directly deposited to bank by a customer.	11,000

Prepare a Bank Reconciliation Statement on 31 May 2012 for the following:

(1) Cheques issued before May 31, 2012, amounting to Rs. 25,940 had not been presented for encashment.

(2) Two cheques of Rs. 3,900 and Rs. 2,350 were deposited into the bank on May 31 but the bank gave credit for the same in June, 2012.

(3) There was also a debit in the passbook of Rs. 2,500 in respect of a cheque dishonoured on 31.5.2012. Prepare a bank reconciliation statement as on May 31, 2012

Q. From the following information, prepare Bank Reconciliations Statement as on 31st March, 2018:

		₹
(i)	Bank overdraft as per Pass Book.	36,000
(ii)	Cheques issued but not presented for payment.	19,700
(iii)	Cheques deposited with bank but not collected.	25,000
(iv)	Cheques entered in Cash Book but not banked.	9,000
(v)	Directly deposited to bank by a customer.	11,000

Q. Pass Journal entries for the following transactions:−
1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000. Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from Y who owed us ₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.

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Cheques deposited in bank may not be available for immediate use due to ____________.

The correct option is B receipt floatReceipt Float is a time gap between the cheque deposited date and date of cash collection in the bank. There will be clearing time of cheque, hence the amount of cheque cannot be available for immediate use due to receipt float.

The correct option is B receipt float
Receipt Float is a time gap between the cheque deposited date and date of cash collection in the bank. There will be clearing time of cheque, hence the amount of cheque cannot be available for immediate use due to receipt float.