2
Question
If the pass book shows a favorable balance and if it is taken as the starting point for the purpose of bank reconciliation statement then cheques issued but not presented for payment should be ______to find out cash balance.
If the pass book shows a favorable balance and if it is taken as the starting point for the purpose of bank reconciliation statement then cheques issued but not presented for payment should be ______to find out cash balance.
Open in App
Solution
The correct option is A Deducted
Cheques issued but not presented for payment are recorded in the cash book first. They are recorded by the bank in the pass book only when such cheques are cleared by the bank. Thus, when we start by taking favourable balance as per pass book as the starting point, cheques issued but not presented should be deducted in order to arrive at the balance as per cash book and reconcile the two balances.
Cheques issued but not presented for payment are recorded in the cash book first. They are recorded by the bank in the pass book only when such cheques are cleared by the bank. Thus, when we start by taking favourable balance as per pass book as the starting point, cheques issued but not presented should be deducted in order to arrive at the balance as per cash book and reconcile the two balances.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
