Which of these items are taken into consideration for preparing adjusted cash book?

Cheque issued by not paid

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Cheque deposited but not cleared

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Wrong totalling of pass book

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Mistake in Cash book

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Solution

The correct option is A Mistake in Cash book
When there is a difference between bank column of cash book and pass book, there is confusion that which balance should be taken to "Balance Sheet" as "Bank Balance" while preparing financial statements.

Since there is a difference between bank column of cash book and pass book, taking either of the two balances will not relevant a true picture of the "Bank Balance".

Therefore, at the end of the financial year, cash book must be adjusted for all the errors/omissions etc. It is called as "Adjusted Cash Book". All errors made in the cash book are to be taken into consideration for preparing adjusted cash book.

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Similar questions

Q. Bank balance as per cash book (Dr.) of NZ & Co. was Rs.

1, 050

-Bank charges not recorded in cash book was Rs.

180

.
-Rs.

750

was directly paid by customer into bank was not recorded in cash book.
-Debit side of cash book was undercast by Rs.

100

-Cheque deposited for Rs.

700

was not credited in pass book.
-Out of cheques of Rs.

900

issued but not presented for payments.
If BRS is prepared after adjusting cash book, balance as per Adjusted Cash book should be Rs.________ and balance as pass book should be Rs.__________

Prepare a Bank Reconciliation Statement on 31st December 2009 for the following when overdraft as per pass book is Rs.20,000.

(1) Cheques issued,but not presented for payment Rs.25,000.

(2) Interest on bank overdraft charged by the bank,but not entered in cash book Rs.1,000.

(3) Cheque deposited but not collected Rs.22,000.

(4) Insurance premium Rs.500 paid by bank under standing order but not recorded in cash book.

Balance shown by Cash Book: Rs 10,000
Cheques issued but not presented for payment: Rs 4,000
Cheques deposited but not yet collected: Rs 3,000

Balance as per pass book shall be?

Q. Prepare the Bank Reconciliation Statement from the following particulars for the period ending 31st December, 2012.
(a) Overdraft as per Pass Book on 31-12-2012 ₹ 7,600.
(b) Cheques deposited but not collected by the bank ₹ 8,560.
(c) Incidental charges not recorded in Cash Book ₹ 80.
(d) Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment.
(e) Insurance premium paid by bank not recorded in the Cash Book ₹ 4,200.
(f) On 31st December, 2012 cash was deposited in bank ₹ 385 but the cashier debited the bank column with ₹ 485 by mistake.

Q. From the following information, prepare Bank Reconciliation Statement as on 31st March, 2019:

		₹
(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

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