Which one of the following items will be added in debit balance of cash book in the preparation of bank reconciliation statement?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Cheques sent to the bank for collection but not entered in the cash book.
When a bank reconciliation statement starts from the debit balance of the cash book (the favourable balance), an item is added if it has raised the bank's balance but not the cash book's. A cheque sent to the bank and collected by it, but never entered in the cash book, has increased the pass book balance only, so it is added.
Option (1) Cheques sent to the bank for collection but not yet collected. — Incorrect. The cash book has already been debited but the bank has not credited them, so they are deducted.
Option (2) Cheques entered into the cash book but not sent to the bank for collection. — Incorrect. The cash book shows them but the bank does not, so they too are deducted.
Option (4) None of the above — Incorrect. Option (3) is an item to be added.
Note: This topic is not covered in any edition of the NCERT Accountancy textbook.