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Interest and Dividends Collected by Bank

Direct collec...

Question

Direct collections by the bank are the balance of cash book at the time of reconciliation.

A

added to

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B

deducted from

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C

Not adjusted in

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Solution

The correct option is A added to
At the time of reconciliation, direct collections by the bank are always added to the balance of cash book because such transactions do not appear in cash book but they are present in the bank statement.

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Similar questions

Q. Bank collected dividend of Rs.

25, 000

on behalf of customer which was not recorded in cash book.
In respect of the above given transaction which of the following treatment is correct for preparation of bank reconciliation statement?
(I) If BRS is prepared without adjusting cash book and the balance as per cash book is starting point then Rs.

25, 000

will be subtracted.
(II) If BRS is prepared with adjusted cash book then Rs.

25, 000

will be debited to the adjusted cash book.
(III) If BRS is prepared without adjusting cash book and the balance as per cash book is starting point then Rs.

25, 000

will be added.
(IV) If BRS is prepared with adjusted cash book the Rs.

25, 000

will be credited to the adjusted cash book.

Q. Direct collections received by the bank on behalf of the customers would increase the balance as per the bank pass book when compared to the balance as per the cash book.

If starting point is cash book balance, deductions in bank pass book not given to effect in cash book are ___ while preparing BRS.

Q. Direct collection received by the bank on behalf of its customers will increase the balance as per the Bank Pass-book as compared to the balanceas per the Cash-book.

Q. Bank balance as per cash book (Dr.) of NZ & Co. was Rs.

1, 050

-Bank charges not recorded in cash book was Rs.

180

750

was directly paid by customer into bank was not recorded in cash book.
-Debit side of cash book was undercast by Rs.

100

-Cheque deposited for Rs.

700

was not credited in pass book.
-Out of cheques of Rs.

900

issued but not presented for payments.
If BRS is prepared after adjusting cash book, balance as per Adjusted Cash book should be Rs.________ and balance as pass book should be Rs.__________

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