When drawing up a bank reconciliation statement, if you start with a debit balance as per the pass book, the cheques issued but not presented for payments should be _________.

subtracted

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not required to be adjusted

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added

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none of these

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Solution

The correct option is C added
Cheques issued but not presented for payment are entered in the cash book at the moment the cheques are drawn but would not be reflected in the pass book and so the cash book balance would be higher.
Therefore, when drawing up a bank reconciliation statement, if you start with a debit balance as per pass book, the cheques issued but not presented for payments should be added to reach the cash book balance

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Similar questions

Prepare a Bank Reconciliation Statement on 31 March 2004 for the following when debit balance of pass book is Rs.2,500:

(1) Cheques issued, but not presented for payment Rs.2,000.

(2) Cheques issued, but omitted to be record in Cash Book Rs.1,000.

(3) Cheque deposited but not collected Rs.500.

(4) A discounted bill of exchange dishonoured Rs.1,000.

(5) Interest on overdraft Rs.100.

	₹
(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

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