Which of the following is correct in case of interest collected by bank?

Added to balance in cash book

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Subtracted from balance in cash book

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Added to bank balance

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None of these

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Solution

The correct option is A
Added to balance in cash book

Interest collected by bank is added to the balance in the cash book.

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Bank added interest in the bank account will result in bank balance being ___ when compared to cash book balance.

Q. In bank reconciliation statement the account of outstanding cheques is added to ____ book balance of cash.

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.

Q. From the following particulars, ascertain the bank balance as per Pass Book as on 31st March, 2019 (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, 2019 ₹ 40,000.
(ii) Cheques issued but not encashed up to 31st March, 2019 amounted to ₹ 10,000.
(iii) Cheques paid into the bank, but not cleared up to 31st March, 2019 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.

Which of the following shall be added in the closing balance of cash book while preparing BRS?
(1). Interest credited in the bank Rs 200
(2). Interest charged by bank Rs 200

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Which of the following is correct in case of interest collected by bank?

The correct option is A Added to balance in cash book Interest collected by bank is added to the balance in the cash book.

The correct option is A
Added to balance in cash book

Interest collected by bank is added to the balance in the cash book.