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Can you explain the answer of this question below:
If balance as per Pass Book is the starting point, then uncollected cheques are:
- A:Added in BRS
- B:Subtracted in BRS
- C:Ignored while preparing BRS
- D:None of these
The answer is a.
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Can you explain the answer of this question below:If balance as per Pa...
Explanation:
When preparing a Bank Reconciliation Statement (BRS), the starting point is the balance as per Pass Book, which is the balance shown in the bank statement. However, this balance may not be the same as the balance in the company's Cash Book due to various reasons, such as outstanding cheques, bank charges, interest, etc.
One of the reasons for the difference between the balances is uncollected cheques, which are cheques issued by the company but have not yet been presented for payment by the recipients. These cheques are also known as outstanding cheques or uncleared cheques.
When preparing a BRS, uncollected cheques are added to the balance as per Pass Book because they have already been recorded in the company's Cash Book but have not yet been debited by the bank. Therefore, they are part of the company's bank balance that is not reflected in the bank statement.
For example, if the balance as per Pass Book is Rs. 50,000 and there are uncollected cheques worth Rs. 10,000, the adjusted bank balance would be Rs. 60,000 (Rs. 50,000 + Rs. 10,000).
Therefore, the correct answer is option 'A', i.e., uncollected cheques are added in BRS.
When preparing a Bank Reconciliation Statement (BRS), the starting point is the balance as per Pass Book, which is the balance shown in the bank statement. However, this balance may not be the same as the balance in the company's Cash Book due to various reasons, such as outstanding cheques, bank charges, interest, etc.
One of the reasons for the difference between the balances is uncollected cheques, which are cheques issued by the company but have not yet been presented for payment by the recipients. These cheques are also known as outstanding cheques or uncleared cheques.
When preparing a BRS, uncollected cheques are added to the balance as per Pass Book because they have already been recorded in the company's Cash Book but have not yet been debited by the bank. Therefore, they are part of the company's bank balance that is not reflected in the bank statement.
For example, if the balance as per Pass Book is Rs. 50,000 and there are uncollected cheques worth Rs. 10,000, the adjusted bank balance would be Rs. 60,000 (Rs. 50,000 + Rs. 10,000).
Therefore, the correct answer is option 'A', i.e., uncollected cheques are added in BRS.
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Can you explain the answer of this question below:If balance as per Pa...
Balance as per pass Book means Debit Balance in BRS........... cheque uncollected will also come to debit side......... so, A is answer :)
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Can you explain the answer of this question below:If balance as per Pass Book is the starting point, then uncollected cheques are:A:Added in BRSB:Subtracted in BRSC:Ignored while preparing BRSD:None of theseThe answer is a.
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Can you explain the answer of this question below:If balance as per Pass Book is the starting point, then uncollected cheques are:A:Added in BRSB:Subtracted in BRSC:Ignored while preparing BRSD:None of theseThe answer is a. for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:If balance as per Pass Book is the starting point, then uncollected cheques are:A:Added in BRSB:Subtracted in BRSC:Ignored while preparing BRSD:None of theseThe answer is a. covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:If balance as per Pass Book is the starting point, then uncollected cheques are:A:Added in BRSB:Subtracted in BRSC:Ignored while preparing BRSD:None of theseThe answer is a..
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