CA Foundation Exam  >  CA Foundation Questions  >  When balance as per cash book is the starting... Start Learning for Free
When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will be
  • a)
    Added by Rs. 1300
  • b)
    Subtracted by Rs. 1,300
  • c)
    Added Rs. 900
  • d)
    Subtracted by Rs. 400
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
When balance as per cash book is the starting point, and cheques issue...
**Explanation:**

In a bank reconciliation statement, the purpose is to reconcile the cash balance as per the cash book with the cash balance as per the bank statement.

In this given scenario, the starting point is the cash balance as per the cash book. Let's assume that the cash balance as per the cash book is Rs. X.

The mistake made by the bank is that they wrongly credited the cheque issued for payment of Rs. 400 as Rs. 900. This means that the bank has recorded an extra credit of Rs. 500 (900 - 400) in the cash book.

To reconcile the cash balance, we need to adjust the cash balance as per the cash book for this error.

The correct cash balance as per the cash book would be:

Cash balance as per the cash book (X) + Extra credit recorded by the bank (500) = X + 500

Therefore, the cash balance as per the cash book should be increased by Rs. 500.

Now, let's consider the options given:

a) Added by Rs. 1300 - This option is correct because we need to add Rs. 500 to the cash balance as per the cash book.

b) Subtracted by Rs. 1,300 - This option is incorrect because we are not subtracting any amount from the cash balance as per the cash book.

c) Added Rs. 900 - This option is incorrect because the mistake made by the bank was that they wrongly credited the cheque for Rs. 400 as Rs. 900. So, we need to adjust the cash balance by Rs. 500, not Rs. 900.

d) Subtracted by Rs. 400 - This option is incorrect because we are not subtracting Rs. 400 from the cash balance as per the cash book. We are adding Rs. 500.

Therefore, the correct answer is option 'A' - Added by Rs. 1300.
Free Test
Community Answer
When balance as per cash book is the starting point, and cheques issue...
Explore Courses for CA Foundation exam
When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer?
Question Description
When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer?.
Solutions for When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer?, a detailed solution for When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice When balance as per cash book is the starting point, and cheques issued for payment Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation statement cash balance will bea)Added by Rs. 1300b)Subtracted by Rs. 1,300c)Added Rs. 900d)Subtracted by Rs. 400Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev