Question

Mr. X issued cheques worth $Rs.15,000$ in March $2014$ out of which cheques worth $Rs.10,000$ only were presented for payment by $31stMarch,2014$. While reconiling bank and cash book balance as on $31stMarch,2014$, how much would be added to balance as per cash book to arrive at balance as per Pass book.

• A. $Rs.15,000$
• B. $Rs.10,000$
• C. $Rs.5,000$
• D. $Rs.7,500$

Answer 1

The correct option is C $Rs.5,000$

Cheques issued by Mr. X is for $Rs.15000$, so the cash book would be credited by this amount and for the same amount the passbook would be debited only if the cheques are presented for payment. But in the present case cheques worth $Rs.5000$ were not presented for payment by $31stMarch,2014$ due to which the passbook balance would higher than the cash book by $Rs.5000$.

So $Rs.5000$ would have to added to the cash book to arrive at balance as per pass book.