Bank Reconciliation Statement

Bank Reconciliation Statement is prepared:

• at the end of the month

• at the end of a quarter

• at the end of an year

• at any date as per the policy of the business firm.

Who prepare Bank Reconciliation statement

• The Accountant of business firm.

• The bank in which the firm has an account

• Any person on behalf of the firm

• None of the above

Bank Reconciliation Statement is prepared to reconcile

• the balance of cash column and bank column of cash book

• the balance of bank column of cash book and the balance in pass book

• the balance of pass book with Profit and Loss account of the firm

• the balance of cash book with Profit and Loss account of the firm

Debit balance in the cash book is equivalent to

• overdraft as per Pass Book

• credit balance as per Pass Book

• overdraft as per Cash Book

• debit balance as per Pass Book

A business receives its bank statement showing the closing balance as ₹ 6,500 overdrawn. It is found that there were unpresented cheques amounting to ₹ 4,000 and uncollected cheques amounting to ₹ 1,500.

• ₹ 1,000

• ₹ 4,000

• ₹ 9,000

• ₹ 12,000

Cash book shows an overdraft of ₹ 1,000. On receipt of bank statement, it was identified that one of the customers has directly deposited ₹ 400 into the account and bank charges of ₹ 20 had been debited by the bank. The balance as per bank statement is ₹ __________________.

• ₹ 1,380 (dr.)

• ₹ 620 (dr.)

• ₹ 1,420 (dr.)

• ₹ 1,380 (cr.)

Credit balance as per the Cash Book means _____________ are more than _______________.

When Bank reconciliation statement is started with credit balance as per Pass Book, interest allowed by the bank is ______________ .

• Added

• Subtracted

The date of preparing Bank Reconciliation Statement is 31st March 2020. State the amount of cheques paid into bank but not credited by the bank if four cheques amounting to ₹ 20,000 are deposited on 28 March 2020 out of which two cheques amounting to ₹ 7,500 were credited on 3rd April 2020.

• ₹ 27,500

• ₹ 12,500

• ₹ 20,000

• ₹ 7,500

If minus items in a bank reconciliation statement are more than plus items, it will result in

• Balance (favourable balance)

• Overdraft (unfavourable balance)