CameraIcon

SearchIcon

MyQuestionIcon

Direct Payments Made by Bank

If starting p...

Question

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

A

Added

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Subtracted

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

Not required to be adjusted

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
Subtracted

Direct deductions by bankers are always subtracted in cash book because such transactions are not appearing in cash book but they are present in the bank statement.

Suggest Corrections

thumbs-up

0

mid-banner-image

mid-banner-image

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. 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.__________

Q. Insurance Premium upto 31st March, 2017 paid by the Bank, Rs 500 not recorded in the Cash Book. While preparing BRS when starting point is cah book balance Rs. 500 will be subtracted.

Q. Bank balance as per cash book (Dr.) Rs.

27, 450

. A comparison of pass book and cash book revealed the following:
- Bank charges Rs.

200

was not entered in cash books.
- Cheques amounting to Rs.

250

has been dishonoured but not recorded in cash book.
Balance as per pass book will be _____ .

Q. When balance as per cash book is the starting point, bank charges not recorded in cash book are ________.

View More

similar_icon

Related Videos

lock

Bank Reconciliation Part 1

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Direct Payments Made by Bank

Standard XI Accountancy