alleryIn adjusted cash book treatment, which of the following errors will NOT be adjusted in cash book?
AWrong amount in pass book
BWrong casting of cash book
CBank charges in pass book
DDirect debit by the bank
Answer & Solution
Correct answer: A. Wrong amount in pass book
1. Adjusted cash book corrects errors and omissions made by the firm's own books.
2. Bank charges and direct debits known only via pass book are added to adjusted cash book.
3. Wrong casting of cash book is a firm's own error, also adjusted.
4. Errors made by the bank in its pass book must be corrected by the bank, not in the firm's adjusted cash book.
_Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §7.2 ¶5_
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