Question

When balance as per cash book is the starting point, cheques issued but not presented for payments are ____________.

• A. subtracted
• B. not required to be adjusted
• C. added
• D. none of the above

Answer 1

Answer: (C)

added

In case of cheques issued but not presented for payment, the entry for the same would be entered in the cash book as soon as the cheques are issued by the account holder as a result the cash book balance would be less than the pass book balance.

So, while preparing reconciliation statement if balance as per cash book is the starting point , cheques issued but not presented for payments are added .