Question

When drawing up a Bank Reconciliation Statement, if you start with a debit balance as per the Bank Statement, cheques issued but not presented for payment should be __________.

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

Answer 1

The correct option is A added

Debit balance as per bank statement means that it is an bank overdraft and that the cash book would be having a credit balance. When cheque is issued but not presented for payment, the entry for the same would be credited in the cash book and so the cash book negative balance would increase by that much amount.

So while drawing up a bank reconciliation statement, with debit balance as per bank statement, cheque issued but not presented for payment should be added.