In a bank reconciliation statement, an overdraft as per the cash book will be increased by: MCQ with Answer and Explanation

In a bank reconciliation statement, an overdraft as per the cash book will be increased by:
A. Interest allowed by bank
B. Direct deposit by customer
C. Cheques deposited but not credited
D. Cheques issued but not presented for payment
Answer: Option D
Solution (By JKSSB Mock Tests)
Cheques issued but not presented reduce the bank balance, so they are added to the overdraft balance as per the cash book to reconcile with the pass book.

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Practice More Accountancy and Book Keeping Questions

Question #1
'Capital Work-in-Progress' is shown in the Balance Sheet as:
A. Intangible asset
B. Current asset
C. Investment
D. Fixed asset under construction

Correct Answer: Option D


Explanation:
It represents assets not yet ready for use, part of fixed assets.

Question #2
The 'Test of Details' includes:
A. Budget comparison
B. Vouching, tracing, and inspection of documents
C. Ratio analysis
D. Trend analysis

Correct Answer: Option B


Explanation:
Test of details are specific tests of transactions and balances.

Question #3
Which of the following is a non-cash item in the Profit & Loss Account?
A. Salaries paid
B. Commission paid
C. Depreciation
D. Rent paid

Correct Answer: Option C


Explanation:
Depreciation is a non-cash expense, as no cash outflow occurs.