Question

While preparing a Bank Reconciliation Statement, if you start with a debit balance as per the cash book, then cheques issued but not presented within the period are _____________.

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

Answer 1

The correct option is A to be added

Cheques issued represent payments made. So when cheques are issued and presented for payment it would lead to decrease in the bank balance as per both pass book and cash book. But, if cheques are not presented within the period then the bank would not consider those cheques and the bank balance as per pass book would be higher than bank balance as per cash book.

So, while preparing a bank reconciliation statement, starting with debit balance as per the cash book if cheques are issued but not presented within the period then they are to be added to reach the balance as per pass book.