Bank Reconciliation Statement · Class 11 · CBSE · Commerce Accountancy
When preparing a Bank Reconciliation Statement starting with an overdraft balance as per the cash book, how are cheques issued but not yet presented…
Practice question from Bank Reconciliation Statement (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
hard · MCQ · Q-938B2A
When preparing a Bank Reconciliation Statement starting with an overdraft balance as per the cash book, how are cheques issued but not yet presented treated?
- A.Added
- B.DeductedCorrect answer
- C.Ignored
- D.Added twice
Solution
Starting with a cash book overdraft (credit balance), cheques issued but not yet presented would have reduced the cash book balance further, but the pass book is not yet affected. To reconcile back to the pass book, this item must be deducted.
More from Bank Reconciliation Statement
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