Question

The bank statement shows as overdrawn balance of Rs. 2,000. A cheque for Rs. 500 drawn in favour of a credit has not yet been presented for payment. When the creditor presents the cheque for payment, the bank balance will be ___________ .

• A. Rs. 1,500
• B. Rs. 2,500
• C. Rs. 1,500 (overdrawn)
• D. Rs. 2,500 (overdrawn)

Answer 1

Answer: (D)

Rs. 2,500 (overdrawn)

When balance as per passbook is the starting point adjustments are to be made in the passbook. Unpresented cheques are the cheques which are issued to a person and he/she has not presented it for payment. In this case the cash book is credited by the cheque issued and passbook is not so the cash book balance is less than passbook, hence unpresented cheques are subtracted from the passbook balance.

Hence balance as per pass book is negative 2000 when unpresented cheques are presented the overdrawn balance will be (2500).