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On 30/06/2022 cash book shows balance ₹44,50,000. Cheques issued ₹6,00,000 unpresented. Deposits ₹11,05,000 (₹5,50,000 collected). Dividend ₹40,000 + Rent ₹6,00,000 credited by bank. Insurance ₹27,000 paid by bank. Payment side undercast ₹5,000. Bank charges ₹1,500 in pass book. Bills payable ₹2,00,000 paid by bank. Bill discounted ₹60,000, cost ₹1,000. Adjusted cash book balance:
A₹49,55,500 final balance
B₹48,55,500 final balance
C₹47,50,000 final balance
D₹50,15,000 final balance
Answer & Solution
Correct answer: A. ₹49,55,500 final balance
1. Start with cash book ₹44,50,000.
2. Add dividend ₹40,000, rent ₹6,00,000 (bank credits not yet in cash book) and bill discount net ₹59,000.
3. Less insurance ₹27,000, undercasting ₹5,000, bank charges ₹1,500, bills payable ₹2,00,000.
4. Adjusted cash book ≈ ₹49,55,500 (ICAI practice solution).
_Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", Practice Q2_
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