On 1st January 21 Mr Dawood started business in Oman. He opened a bank account with bank muscat. The accountant used to maintain the Cash and bank transactions in a cash book. In the initial month the cash book and the Pass book were showing same balance, however as the business grew the number of bank transactions increased and then the balance as per the cash book and bank book were not same. The accountant was not able to find the differences between the two and appointed you to help him in preparing the Bank reconciliation. You have collected the data of cash book and pass book for the month of September and found the following.

a) Cheques deposited in bank for RO 15,200 of which cheque for RO 7,200 were cleared in October

b) The cheques issued for RO 10,800 of which cheque for RO 5,800 were presented to the bank till September.

c) There was a credit in the bank account for insurance claim amounting to RO 2,000

d) The bank debited the account for the Loan instalment for RO 5,000.

e) The balance as per the cash book on 30 September was RO 8,500.

The Net effect of items not recorded in Cash Book is.

a.

Cash balance is less by RO 7000

b.

Cash balance is less by RO 3000

c.

Cash balance is more RO 7000

d.

Cash balance is less by RO 3000

The balance as per the bank Statement is.

a.

13300

b.

14500

c.

13700

d.

2500

The Net effect of items not recorded in Pass Book is.

a.

Pass book balance is less by RO 7200

b.

Pass book balance is less by RO 2200

c.

Pass book balance is less by RO 2200

d.

Pass book balance is more RO 5000