While preparing a bank reconciliation statement from the passbook overdraft balance, a cheque deposited but not yet collected by the bank should be: MCQ with Answer and Explanation
While preparing a bank reconciliation statement from the passbook overdraft balance, a cheque deposited but not yet collected by the bank should be:
A. Deducted
B. Added
C. Depends on amount
D. No effect
Answer: Option A
Solution (By JKSSB Mock Tests)
Starting with overdraft as per passbook, a deposit in transit increases the overdraft in passbook (makes it less negative). To reconcile to cash book overdraft, we deduct it because the cash book already recorded it and shows a lower overdraft. So deduct.
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