Overdraft as per the pass book is less than the overdraft as per cash book when there are cheques deposited but not collected by the banker.

True

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False

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Solution

The correct option is B False
Cheque deposited but not collected by the banker are the cheques directly received by the bank. Such cheques increases the positive balance in the pass book. This, in turn, reduces the overdraft as per pass book and makes it less than the overdraft as per cash book as such cheques have not been debited in the cash book yet.

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Similar questions

		₹
(i)	Bank overdraft as per Pass Book.	36,000
(ii)	Cheques issued but not presented for payment.	19,700
(iii)	Cheques deposited with bank but not collected.	25,000
(iv)	Cheques entered in Cash Book but not banked.	9,000
(v)	Directly deposited to bank by a customer.	11,000

		₹
(i)	Bank overdraft as per Pass Book.	36,000
(ii)	Cheques issued but not presented for payment.	19,700
(iii)	Cheques deposited with bank but not collected.	25,000
(iv)	Cheques entered in Cash Book but not banked.	9,000
(v)	Directly deposited to bank by a customer.	11,000

Prepare a Bank Reconciliation Statement on 31st December 2009 for the following when overdraft as per pass book is Rs.20,000.

(1) Cheques issued,but not presented for payment Rs.25,000.

(2) Interest on bank overdraft charged by the bank,but not entered in cash book Rs.1,000.

(3) Cheque deposited but not collected Rs.22,000.

(4) Insurance premium Rs.500 paid by bank under standing order but not recorded in cash book.

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