Bank Reconciliation Statement

Bank Reconciliation Statement

Questions and answers

1.A Bank Reconciliation Statement is prepared to know the causes for the difference between:



The balances as per cash column of Cash Book and the Pass Book.



The balance as per bank column of Cash Book and the Pass Book



The balance as per bank column of Cash Book and balances as per cash column of Cash Book



None of the above

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Reconciliation Quizzes & Trivia

About This Quiz

This quiz on Bank Reconciliation Statement assesses understanding of the adjustments needed
to reconcile the differences between the cash book balance and the pass book balance. It tests
skills in identifying unrecorded transactions and calculating correct bank balances, crucial for
accurate financial reporting.



2.

The cash book showed an overdraft of Rs. 1,500, but the pass book made up to the same date.

showed that cheques of Rs. 100,Rs. 50 and Rs. 125 respectively had not been presented for
payments; and the cheque of Rs.400 paid into account had not been cleared. The balance as per
the cash book will be

,Rs. 1,100




Rs. 2,175




Rs. 1,625




Rs. 1,375



Correct Answer

A. Rs. 1,625

Explanation

3The cash book shows an overdraft of Rs. 1,500, but the pass book reveals that certain cheques
have not been presented for payment and a cheque paid into the account has not been cleared.
Therefore, the balance as per the cash book needs to be adjusted to account for these
transactions. The total amount of the uncleared cheques is Rs. 275 (Rs. 100 + Rs. 50 + Rs. 125),
and the uncleared cheque paid into the account is Rs. 400. Subtracting these amounts from the
overdraft of Rs. 1,500, the adjusted balance as per the cash book will be Rs. 1,62

Debit balance as per Cash Book of ABC Enterprises as on 31.3.2006 is Rs. 1,500.Cheques
deposited but not cleared amounts to Rs. 100 and Cheques issued but not presented of Rs. 150.
The bank allowed interest amounting Rs. 50 and collected dividend Rs. 50 on behalf of ABC
Enterprises. Balance as per pass book should be



1,600

,1,450




1,850




1,650



Correct Answer

A. 1,650

Explanation

The correct answer is 1,650. The balance as per the cash book is Rs. 1,500. Cheques deposited
but not cleared amount to Rs. 100, which should be added to the cash book balance. Cheques
issued but not presented amount to Rs. 150, which should be deducted from the cash book
balance. The bank allowed interest amounting to Rs. 50 and collected dividend of Rs. 50 on
behalf of ABC Enterprises, which should be added to the cash book balance. Therefore, the
balance as per the pass book should be Rs. 1,500 + Rs. 100 - Rs. 150 + Rs. 50 + Rs. 50 = Rs.
1,650.



4.

When preparing a Bank Reconciliation Statement, if you start with a debit balance as per the
Cash Book, then cheques issued but not presented within the period are



Added




Deducted

, Not required to be adjusted




None of the above



Correct Answer

A. Added

Explanation

When preparing a Bank Reconciliation Statement, if you start with a debit balance as per the
Cash Book, it means that the Cash Book shows more cash than what is actually available in the
bank account. This could be due to cheques issued by the company but not yet presented to the
bank for payment. These cheques need to be deducted from the Cash Book balance to reconcile
it with the actual bank balance. Therefore, the correct answer is "Deducted".



5.

If the cheque is not presented for the payment upto the date of the preparation of the Bank
Reconciliation Statement, then the balance as per Pass Book will be



Higher than the balance shown by the cashbofck by the amount of unpresented cheque.




Lower than the balance shown by the cashbook by the amount of unpresented cheque.




Same as shown by the cashbook.