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1.Bank reconciliation statement is prepared to
(a) Ascertain the cash book balance
(b) Ascertain the bank balance
(c) Ascertain the overdraft balance
(d) Ensure balance as shown in cash book is in sync with that shown in the pass book.
Bank reconciliation statement is prepared to reconcile the difference between the bank balance as per Cash Book. So, option (d) is correct.
2. Bank reconciliation statement is prepared by
(a) The bank
(b) The bank customer
(c) The auditor
(d) All of the above
Bank Reconciliation statement is prepared by the customer of the bank (i.e the organisation who has a bank account). So, option (b) is correct.
3. Debit balance in Bank pass book means
(a) Bank overdraft.
(b) Bank Balance.
(c) Balance as per Cash Book.
(d) All of the above
Debit balance in bank pass book means bank overdraft balance. In cash book, it will be shown as credit balance. So, option (a) is correct.
4. Credit balance in Bank pass book means
(a) Bank overdraft.
(b) Bank Balance.
(c) Balance as per Cash book.
(d) Total of Bank A/c.
Credit balance in bank pass book means customer balance lying in bank account. In cash book, it will be shown as debit balance. So, option (b) is correct.
5. Bank reconciliation is prepared by
(a) Sole Proprietor concern.
(b) Partnership firm.
(c) Corporate bodies.
(d) All of the above.
Bank reconciliation statement is prepared to reconcile the difference between the bank balance as per Cash Book. by all types of Bank Customers whoever maintains a Bank a/c. So, option (d) is correct.
6. Bank Reconciliation statement is
(a) Combined cash bank book.
(b) Statement showing negative balance of bank account
(c) A statement showing the analysis for difference between the balances of cash book and pass book.
(d) A summary of all bank transactions
Bank reconciliation statement is not a part of books of accounts. It is a statement showing the analysis of difference between the balances of cash book and pass book. So, option (c) is correct.
7. Debit Balance in bank account column in the Cash Bank Book, means
(a) Overdraft as per Pass Book.
(b) Overdraft as per Cash Book.
(c) Credit Balance as per Pass Book.
(d) Neither of these.
Debit balance in cash book means balance lying in bank account. In bank pass book, it will be shown as credit balance. So, option (c) is correct.
8. Credit Balance in the bank column in Cash / Bank Book means
(a) Overdraft as per Pass Book.
(b) Favorable Balance as per Cash Book.
(c) Favorable Balance as per Pass Book.
(d) Neither of these.
Credit balance in bank column in cash book means overdraft in bank account. In bank pass book, it will be shown as debit balance. So, option (a) is correct.
9. Overdraft as per cash book means
(a) Credit balance in the cash column cash book.
(b) Credit balance in the bank column of the cash book.
(c) Debit balance in the pass book.
(d). Both b & c
Credit balance in bank column in cash book means overdraft in bank account. In bank pass book, it will be shown as debit balance. So, option (d) is correct.
10. Bank Reconciliation is a —————— and not an ————-
(a) Ledger, Journal.
(b) Account, Statement.
(c) Statement, Account.
(d) Ledger, Account.
Bank reconciliation statement is a statement, not an account. It contains explanation of the differences in balance as per cash book and bank statement. So, option (c) is correct.
11. Mr. A issued several cheques totaling Rs.20, 000 in March 2022 out of which cheques worth Rs.5, 000 only were presented for payment by 31st March, 2022. Balance as per pass book was Rs.25, 000. What would be balance as per cash book?
(a) Rs.5,000
(b) Rs.10,000
(c) Rs.15,000
(d) Rs.20,000
Out of cheque for Rs 20000 issued, only 5000 were presented. So, cheques worth Rs 15,000 were not presented to bank. So, the balance as per cash book would be Rs 25000 Rs 15,000 = 10,000. So, option (b) is correct.
12. Favourable balance of cash book implies that
A) Credit balance of cash book
B) Debit balance of cash book
C) Bank overdraft
D) Adjusted balance of cash book
Favourable balance of cash book implies Debit balance of cash book. Hence option B is correct
13. A cash deposit made by business appears on the bank statement in ——— column.
A) Debit
B) Credit
C) Expenses
D) Liability
A cash deposit made by business appears on the bank statement in Debit column. Hence option B is correct
14. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _ (prepared by business)
A) Cash receipt journal
B) Cash payment journal
C) Cash book
D) Financial statements
Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the Cash Book (prepared by business). Hence option B is correct
15. A check returned by bank marked “NSF” means
A) Bank can’t verify your identity
B) There are not sufficient funds in your account
C) Check has been forged
D) Check can’t be cashed being illegal
A check returned by bank marked “NSF” means there are not sufficient funds account to clear the cheque. Hence option B is correct
16. Favourable balance in bank statement is shown as
A) Credit balance
B) Debit balance
C) Bank overdraft
D) Adjusted balance
Favourable balance in bank statement is shown as Credit balance. So option (A) is correct
17. Overdraft balance in bank statement is shown as
A) Credit balance
B) Debit balance
C) Bank overdraft
D) Adjusted balance
Overdraft balance in bank statement is shown as Debit balance. So option (B) is correct
18. Balance as per cash book=Rs.1000, Unpresented checks issued=Rs.2000, Uncredited checks=Rs.500, Deposit in transit=Rs.500. Compute the balance as per bank statement.
A) Rs.2000
B) Zero
C) Rs.3000
D) Rs.2500
Balance in Bank Statement = Balance in Cash Book (1000) + Unrepresented checks (2000) [Uncredited Cheques (500) + Deposit in Transit (500)] = 1000+2000-1000=2000. Hence option A is correct.
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