A bank reconciliation statement is prepared by ______.

(a)

Bank

(b)

Business

(c)

Debtor to the business

(d)

Creditor to the Business

Debit balance in the bank column of the cash book means _______.

(a)

Credit balance as per bank statement

(b)

Debit balance as per bank statement

(c)

Overdraft as per cash book

(d)

None of the above

A bank reconciliation statement is prepared to know the causes for the difference between:

(a)

The balance as per the cash column of the cash book and bank column of the cash book.

(b)

The balance as per the cash column of the cash book and bank statement

(c)

The balance as per the bank column of the cash book and the bank statement.

(d)

The balance as per petty cash book and the cash book

Which of the following is not the salient feature of bank reconciliation statement?

(a)

Any undue delay in the clearance of cheques will be shown up by the reconciliation

(b)

Reconciliation statement will discourage the accountant of the bank from embezzlement

(c)

It helps in finding the actual position of the bank balance

(d)

Reconciliation statement is prepared only at the end of the accounting period

Balance as per bank statement is Rs. 1,000. Cheque deposited, but not yet credited by the bank is Rs. 2,000. What is the balance as per bank column of the cash book?

(a)

Rs. 3,000 overdraft

(b)

Rs. 3,000 favourable

(c)

Rs. 1,000 overdraft

(d)

Rs. 1,000 favourable