alleryCash book balance is ₹50,000 debit. Only difference: cheques issued ₹60,000 not presented. Pass book balance is:
A₹10,000 debit balance
B₹50,000 credit balance
C₹1,10,000 credit balance
D₹60,000 debit balance
Answer & Solution
Correct answer: C. ₹1,10,000 credit balance
1. Start with cash book debit balance ₹50,000.
2. Cheques issued reduced the cash book but the bank has not yet debited them in the pass book.
3. Add ₹60,000 to the cash book balance to reach pass book balance: 50,000 + 60,000 = ₹1,10,000.
4. Pass book credit balance = ₹1,10,000 (favourable).
_Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", Practice Q5_
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