If the cheque is not presented for the payment up to the date of the preparation of the Bank Reconciliation Statement then the balance as per pass book will be ___________ .

higher than the balance shown by the cash book by the amount of unpresented cheque

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same as shown by the cash book

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twice the balance shown by the cash book

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lower than the balance shown by the cash book by the amount of unpresented cheque

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Solution

The correct option is D higher than the balance shown by the cash book by the amount of unpresented cheque
In case of cheque issued but not presented for payment, the entry for the same would have been entered in the cash book and so the cash book balance will be less than the pass book balance as the same would still not be entered in the pass book.
This is because the bank would record the entry for payment only when the cheque is presented for payment.
And so if the cheque is not presented for the payment up to the date of the preparation of the bank reconciliation statement then the balance as per pass book will be higher than the balance shown by the cash book by the amount of unpresented cheque.

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