When the balance as per Pass Book is the starting point, cheques sent for collection but not collected are _______________.

added in the bank reconciliation statement

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deducted in the bank reconciliation statement

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not required to be adjusted in the bank reconciliation statement

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none of the above

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Solution

The correct option is A added in the bank reconciliation statement
Cheques which have been sent for collection shall be added in cash book since they are already in transit and assuming they shall be realised in cash.
However, cheques are added to the passbook balance only when actually collected. Since the cheques are not yet collected, they are not added in the pass book. Therefore, to get the cash book balance such cheque amount should be added to the pass book balance.

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Similar questions

		₹
(i)	Bank overdraft as per Pass Book.	36,000
(ii)	Cheques issued but not presented for payment.	19,700
(iii)	Cheques deposited with bank but not collected.	25,000
(iv)	Cheques entered in Cash Book but not banked.	9,000
(v)	Directly deposited to bank by a customer.	11,000

Prepare a Bank Reconciliation Statement on 31 December 2009 for the following when credit balance as per bank column of cash book is Rs.1,800:

(1) Cheques issued, but not presented for payment Rs.360.

(2) Cheque deposited but not collected by the bank.Rs.770

(3) Interest on overdraft charged by the bank Rs.30.

(4) A customer directly deposited in bank Rs.500.

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