Question

Cheques of Rs.25,000 were deposited in bank of which only Rs.20,000 were cleared till date. While preparing BRS with balance as per Cash Book, which of the following will hold true :-
(a) Rs.5,000 will be added
(b) Rs.20,000 will be added
(c) Rs.5,000 will be subtracted
(d) Rs.20,000 will be subtracted

Answer 1

Rs.5,000 will be subtracted is true. (Option c)

• A bank reconciliation statement (BRS) records the net effect of transactions. It shows the difference between a bank's passbook and a cashbook.
• In the case of cheques deposited but not credited by the bank, the amount is deducted from the BRS.
• Here, cheques worth Rs.25,000 were deposited out of which only Rs.20,000 were credited.
• The difference of Rs.5,000 will be subtracted from the statement.