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Byju's Answer
Standard XII
Economics
Ratios and OMO
The bookkeepe...
Question

The bookkeeper recorded a cheque at Rupees 340.56 for store supplies. The cheque was recorded by the bank at its correct amount of Rupees 430.65. The bank reconciliation will require a/an ______.

A
addition to balance of cash book
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B
deduction from balance of cash book
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C
addition to bank statement balance
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D
deduction from bank statement balance
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Solution

The correct option is D deduction from balance of cash book
Cheque issued for store supplies is an expense for the business which will reduce the balance in the cash book when debited by the book keeper. When the book keeper recorded a cheque at Rs. 340.56 and the bank recorded it correctly at Rs. 430.65, the bank reconciliation statement will require deduction for book balance of cash as the book keeper credited the cash book short by Rs. 90.09 .

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Q. If the bookkeeper recorded a bank deposit of Rupees 450, but the bank recorded the deposit at its correct amount of Rupees 540. The bank reconciliation will require a/an ______________.
Q. From the following particulars, find out corrected bank balance as per Cash Book and thereafter prepare a Bank Reconciliation Statement as on 31st March, 2019 of a sole proprietor:
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