Which one of the following is not taken into account in adjusting the cash balance?

Mistakes in the cash book.

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Mistakes in the pass book.

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Bank charges debited in pass book.

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Interest and dividend credited in pass book.

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Solution

The correct option is B Mistakes in the pass book.
Mistakes done in pass book will not give any impact to the cash book balance.
Pass book is a summary of statement of bank account which gives the records of all bank transactions. This is updated by the banks on a regular basis. Any mistakes in pass book need to be rectified by the bank and there is no requirement of making the adjustment in cash balance.

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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.__________

Following are the entries recorded in the Cash Book (Book Column) of Deepali Traders for the month ended 31st March, 2011.

Cash Book (Bank Column Only)
Dr.			Cr.
Date	Receipts	Rs	Date	Payments	Rs
2011 Mar. 15 21 22 31	To Cash A/c To Razak’s A/c To Kavita’s A/c To Balance c/d	36,000 24,000 10,000 7,640	2011 Mar.1 4 6 15 20	By Balance b/d By Jonny’s A/c By Roma’s A/c By Ashish ‘s A/c By Patil’s A/c	40,000 2,000 400 240 35,000
		77,640			77,640

On 31^st March 2011, Deepali Trader’s received the Bank Statement, on comparing it with the Cash Book following information was available.
(i) Cheque of Rs 10,000 deposited into the Bank not Credited by Bank.
(ii) Bank charges debited by Bank not entered in the Cash Book Rs 340.
(iii) Interest on Ovendraft debited Rs 1,000 by Bank but not recorded in the Cash Book
(iv) Bank transferred and credited Rs 200 in the Pass Book, not recorded in the Cash Book
(v) Cheques issued but not presented to the Bank Rs 37,400
(vi) Interest on Securities Rs 1,080 and Dividend on shares Rs 1,000 collected and Credited by Bank, not entered in the Cash Book.

Q. From the following information ascertain the balance that would appear in the bank pass book of A on 31st March, 2018:
(i) Bank overdraft of Rs. 63,400 as per cash book on 31st March, 2018.
(ii) Interest on overdraft for 6 months ended 31st March, 2018, Rs. 1,600 entered in the pass book and not recorded in cash book.
(iii) Bank charges of Rs. 300 for the above period are debited in the Pass Book and not recorded in Cash Book.
(iv) Cheques issued but not presented for payment prior to 31st March, 2018, amounted to Rs. 11,680.
(v) Cheques deposited in the bank but not collected before 31st March, 2018 were for Rs. 21,700.
(vi) Interest on investments collected by the bank and credited in the Pass Book, Rs. 12,000.
(vii) Credit side of the Bank column of the Cash Book was undercast by Rs. 1,000.

State whether the following Statements are True or False.

1) Bank Reconciliation Statement is prepared by Bank.
2) Bank Reconciliation Statement is prepared at the end of stipulated period.
3) Overdraft facility is allowed to proprietors personal account
4) Debit balance of Pass Book represents overdraft
5) Credit balance of Bank column of Cash Book represents the balance as per Cash book.
6) Bank charges debited by Bank increases bank balance in the Pass Book.
7) Interest credited in Pass Book is an income to the Customer.
8) Bank Reconciliation Statement is prepared to detect the errors the takes place in accounting

Q. The cash book of N Ltd. showed debit balance of Rs.

6, 000

. A comparison of pass book and cash book revealed the following
-Cheques amounting of Rs.

250

has been dishonoured but not recorded in cash book.
-Total of credit side bank column in cash book was under cast by Rs.

475

Balance as per pass book will be ________.

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