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

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(a)

Passbook

(b)

Cash book

(c)

Both passbook and cash book

(d)

None of these

Unfavourable bank balance means

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(a)

Credit balance in passbook

(b)

Credit balance in cash book

(c)

Debit balance in cash book

(d)

None ofthese

Favourable bank balance means:

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(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:

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(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

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(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

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(a)

Added

Passbook is the statement of account of the customer maintained by the bank.

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(a) False

(b) True

Cheques issued but not presented for payment will reduce the balance as per the passbook

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(a) True

(b) False

Cheques deposited but not collected will result in increasing the balance of the cash book when compared to passbook.

1

(a) False

(b) True

Overdraft as per the passbook is less than the overdraft as per cash book when there are cheques deposited but not collected by the banker.

1

(a) True

(b) False

The debit balance of the bank account as per the cash book should be equal to the credit balance of the business in the books of the bank.

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(a) False

(b) True

What does the credit column of Pass Book show?

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(a)

Deposits by the customer.

What is meant by favourable balance as per Pass Book?

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(a)

Favourable balance as per Pass Book means credit balance in the Pass Book

What is meant by Overdraft or unfavourable balance as per Pass Book?

1

(a)

Overdraft or unfavourable balance as per Pass Book means debit balance in the pass book.

What is meant by favourable balance as per Cash Book?

1

(a)

Favourable balance as per Cash Book means debit balance in the bank column of the Cash Book.

What is meant by overdraft or unfavourable balance as per Cash Book ?

1

(a)

Overdraft or unfavourable balance as per Cash Book means credit balance in the bank column of Cash Book