The bank collected a note receivable on the behalf of a company amounting to Rs 5,500 & it includes the interest of Rs 500. Bank also charged a collection fee of Rs 100. What adjustment shall be done in cash book while preparing BRS?

Rs 5,500 shall be added

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Rs 5,400 shall be added

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Rs 100 shall be added

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Rs 100 shall be deducted

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Solution

The correct option is B
Rs 5,400 shall be added

Rs 5,500 is to be added as it is a receipt and Rs 100 needs to be deducted as it is an expense. Therefore Rs 5400 (5,500-100) is added in cash book.

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Similar questions

Q. The bank has collected a dividend of Rs.500 & also debited Rs.100 in passbook. An amount of shall be to the balance of cash book for reconciling.

The bank has collected an interest of Rs 600 & has credited the same in the pass book. What shall be the adjustment in the balance as per cash book?

Which of the following shall be added in the closing balance of cash book while preparing BRS?
(1). Interest credited in the bank Rs 200
(2). Interest charged by bank Rs 200

Q. Bank collected dividend of Rs.

25, 000

on behalf of customer which was not recorded in cash book.
In respect of the above given transaction which of the following treatment is correct for preparation of bank reconciliation statement?
(I) If BRS is prepared without adjusting cash book and the balance as per cash book is starting point then Rs.

25, 000

will be subtracted.
(II) If BRS is prepared with adjusted cash book then Rs.

25, 000

will be debited to the adjusted cash book.
(III) If BRS is prepared without adjusting cash book and the balance as per cash book is starting point then Rs.

25, 000

will be added.
(IV) If BRS is prepared with adjusted cash book the Rs.

25, 000

will be credited to the adjusted cash book.

Prepare a Bank Reconciliation Statement on 31 March 2004 for the following when debit balance of pass book is Rs. 10,000:

(1) Cheque amounting to Rs.8,000 drawn on 25th of March of which cheques of Rs.5,000 cashed in April 2004.

(2) Cheques paid into Bank for collection to Rs.5,000 but cheques of Rs.2,200 could only be collected in March 2004..

(3) Bank charges Rs.25 and dividend of Rs.350 on investment collected by bank could not be shown in cash book.

(4) A cheque of Rs.600 debited in cash book omitted to be banked.

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The bank collected a note receivable on the behalf of a company amounting to Rs 5,500 & it includes the interest of Rs 500. Bank also charged a collection fee of Rs 100. What adjustment shall be done in cash book while preparing BRS?

The correct option is B Rs 5,400 shall be added Rs 5,500 is to be added as it is a receipt and Rs 100 needs to be deducted as it is an expense. Therefore Rs 5400 (5,500-100) is added in cash book.

The correct option is B
Rs 5,400 shall be added

Rs 5,500 is to be added as it is a receipt and Rs 100 needs to be deducted as it is an expense. Therefore Rs 5400 (5,500-100) is added in cash book.