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Classifying Items of Financial Statements

When balance ...

Question

When balance as per cash book is the starting point,cheque deposited but not cleared are____for the purpose of reconciliation of balance with bank passbook

A

Deducted from cash as per cash book

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B

Added to the cash as per cash book

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C

Deducted from balance as per bank passbook

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D

Kept in abeyance for some time

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Solution

The correct option is A Deducted from cash as per cash book
When balance as per cash book is the starting point,cheque deposited but not cleared are deducted from cash as per cash book for the purpose of reconciliation of balance with bank passbook as that amount is not even added in bank passbook.

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Similar questions

Q. Prepare Bank Reconciliation Statement from the following:

	₹
(i) Debit balance as per the Cash Book.	15,000
(ii) Cheques deposited but not cleared.	1,000
(iii) Cheques issued but not presented.	1,500
(iv) Bank interest.	200

Q. The proper treatment of outstanding cheques on a bank reconciliation when balance as per cash book is the starting point is __________ .

Q. When balance as per cash book is the starting point, cheques deposited but dishonoured are ____________ .

Q. When balance as per cash book is the starting point, bank charges not recorded in cash book are ________.

Q. From the following particulars, ascertain the bank balance as per Pass Book as on 31st March, 2018 (a) without correcting the Cash Book balance and (b) after correcting the Cash Book balance:
(i) The bank balance as per Cash Book on 31st March, 2018 ₹ 40,000.
(ii) Cheques issued but not encaashed up to 31st March, 2018 amounted to ₹ 10,000.
(iii) Cheques paid into the bank, but not cleared up to 31st March, 2018 amounted to ₹ 15,000.
(iv) Interest on investments collected by the bank but not entered in the Cash Book ₹ 500.
(v) Cheques deposited in the bank but not entered in the Cash Book ₹ 12,500.
(vi) Bank charges debited in the Pass Book but not entered in the Cash Book ₹ 100.

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