A bank reconciliation statement is prepared by

1

(a)

Creditors

(b)

Book keeper

(c)

Account holder in a bank

(d)

Debtors

A bank reconciliation statement is prepared with the balance

1

(a)

Passbook

(b)

Cash book

(c)

Both passbook and cash book

(d)

None of these

Favourable bank balance means:

1

(a)

Credit balance in the cash book

(b)

Credit balance in passbook

(c)

Debit balance in the cash book

(d)

Both band c

A bank reconciliation statement is mainly prepared for:

1

(a)

Reconcile the cash balance of the cash book

(b)

Reconcile the difference between the bank balance shown

(c)

Both a and b

(d)

None of these

Passbook is a copy________ of as it appears in the ledger of the bank.

1

(a)

Customer account

When money is with drawn from the bank_____ the account of the customer.

1

(a)

Debit

Normally, the cash book shows a debit balance, passbook shows__________ balance

1

(a)

Credit

Favourable balance as per the cash book means ....................balance in the bank column of the cash book.

1

(a)

Debit

If the cash book balance is taken as starting point the items which make the cash book balance smaller than the passbook must be for__________ the purpose of reconciliation

1

(a)

Added

If the passbook shows a favourable balance and if it is taken as the starting point for the purpose of bank reconciliation statement then cheques issued but not presented for payment should be to_________ find out cash balance.

1

(a)

Deducted

The objective of preparing bank reconciliation statement is to reconcile bank balance shown by Cash Book with that of pass book.

1

(a) False

(b) True

Cheque issued but not yet presented for payment do not make any difference in the bank balance shown by Cash Book with that of pass book.

1

(a) True

(b) False

The pass book of the account holder is a copy of the relevant account in the books of a bank.

1

(a) False

(b) True

A bank reconciliation statement is prepared to ascertain the causes for the difference in the cash column of the Cash Book and the bank column.

1

(a) True

(b) False

A bank reconciliation statement is prepared by the bank.

1

(a) True

(b) False

What is a Bank Reconciliation Statement?

3

(a)

Bank Reconciliation Statement may be defined as a statement which is prepared to reconcile bank balances as per Cash Book and Pass Book.

Why is bank reconciliation statement prepared?

3

(a)

Bank reconciliation statement is prepared to locate and rectify the errors of omissions or commission either in the Cash Book or Pass Book

What is meant by Pass Book?

4

(a)

Pass book means a detail of bank account as shown by the bank records.

What is the importance of Bank reconciliation statement?

4

(a)

State three causes of difference in the Cash Book and Pass Book balances.

5

(a)

Briefly explain the statement "Wrongly debited by  the bank" with the help' of an example.

5

(a)

The cash book shows a bank balance of Rs 7,800 on comparing the cash book with pass book the following discrepancies were noted:

	Particulars	Amt(Rs.)
(i)	Cheque deposited in bank but not Credited	Rs.3,000
(ii)	Cheque issued but not yet presented for payment	Rs.1,500
(iii)	Insurances premium paid by the bank	Rs.2,000
(iv)	Bank interest credit by the bank	Rs.400
(v)	Bank charges	Rs.100
(vi)	Directly deposited by a customer	Rs.4000

5

(a)