alleryStarting from debit balance as per bank statement, which item is ADDED?
ACheque issued not presented
BBills receivable collected by bank
CBank charges debited by bank
DCheques deposited not yet credited
Answer & Solution
Correct answer: D. Cheques deposited not yet credited
1. Debit balance per bank statement = overdraft from the firm's view.
2. Cheques deposited but uncleared had been added in cash book, increasing the cash-book-shown balance / reducing overdraft.
3. To reconcile from pass-book overdraft DOWN to cash-book figure, these uncleared deposits get added to pass book overdraft.
4. Other listed items follow different add/subtract logic per ICAI tabulation.
_Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", MCQ 7_
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