Back to Questions
SSC Financial and Cost Accounting P-1 QUESTION #9616
Question 1
A cheque of Rs. 10,000 was issued to a creditor on July 28 and recorded in the bank book. However, the creditor only presented it to the bank on August 3. When preparing the Bank Reconciliation Statement as at July 31, how should this item be treated?
  • Add Rs. 10,000 to the bank book balance to arrive at the bank statement balance
  • Deduct Rs. 10,000 from the bank statement balance to arrive at the bank book balance
  • Add Rs. 10,000 to the bank statement balance to arrive at the bank book balance✔️
  • Deduct Rs. 10,000 from the bank book balance to arrive at the bank statement balance
Correct Answer Explanation
This is an un-presented cheque. It has been credited (reduced) in the bank book but not yet debited (reduced) from the bank statement. To reconcile: Starting from bank book balance (lower), add back the un-presented cheque to reach the bank statement balance. Alternatively, starting from bank statement balance (higher), deduct the un-presented cheque. Option C is correct.