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Question
In bank reconciliation statement the account of outstanding cheques is added to _____________ balance of cash.
In bank reconciliation statement the account of outstanding cheques is added to _____________ balance of cash.
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Solution
The correct option is A adjusted book
Outstanding cheques or unpresented cheques are those cheques which have been issued by the company but not yet presented for payment by the other party. The amount of such cheques have already been deducted from the cash book by the company accountant. The bank , on the other hand, will credit the bank account only when such cheque has been cleared from the bank. So, while reconciling the balances as per cash book and pass book, the account of outstanding cheques is added to book adjusted balance of cash.
Outstanding cheques or unpresented cheques are those cheques which have been issued by the company but not yet presented for payment by the other party. The amount of such cheques have already been deducted from the cash book by the company accountant. The bank , on the other hand, will credit the bank account only when such cheque has been cleared from the bank. So, while reconciling the balances as per cash book and pass book, the account of outstanding cheques is added to book adjusted balance of cash.
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