alleryAdjusted cash book is mandatory when reconciliation is done at:
AThe end of the financial year
BThe end of every quarter
CThe start of every month
DEvery alternate week only
Answer & Solution
Correct answer: A. The end of the financial year
1. Adjusting the cash book before BRS is optional during interim reconciliations.
2. At year-end the cash book must reflect the true bank balance for the balance sheet to be correct.
3. Hence the adjusted cash book is mandatory at year-end, not at month-end, quarter-end, or weekly intervals.
_Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §7.2 ¶1_
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