• Bank Reconciliation Statement
Back
1

Bank Reconciliation Statement

Description: Prepare Online Exam for Accountancy, Bank Reconciliation statement, Bank Exam, Bank Test Preparation, Bank Test, Account Reconciliation,
Number of Questions: 22
Created by:
Tags: Accountancy Bank Reconciliation statement Account Reconciliation Bank Reconciliation Statement
Start the Quiz
Attempted 0/22 Correct 0 Score 0
‹
›

When a bank debits interest, it results in ________ in bank overdraft.

  1. no change

  2. a decrease

  3. an increase

  4. slight change

Show answer
Correct Option: C
Explanation:

(A)     Charge of interest will change the balance/overdraft. (B)     Charge of interest will decrease the balance. (C)     Any debit by banker is charged from customer.

If a cheque received by a customer has not been paid to a bank, but duly entered in cash book, then

  1. passbook balance would be higher than cash book balance

  2. cash book balance would be higher than passbook balance

  3. there would be no difference in the two books

  4. None of these

Show answer
Correct Option: B
Explanation:

Since the cheque has not been deposited, the bank would not add any amount in the customer's balance, but the amount has already been added to the cash book. Hence, cash book balance would be higher than passbook balance.

The overdraft as per pass book is Rs. 3,245. A debit balance of Rs. 2,380 was recorded as Rs. 3,280 in the cash book and a debit entry of Rs. 3,500 was recorded on the credit side by error. Find the balance as per cash book.

  1. Rs. 4,645

  2. Rs. 1,855

  3. Rs. 11,115

  4. Rs. 9,345

Show answer
Correct Option: D
Explanation:

(A) 3,245 - 900 - 7,000 = Rs. 4,645 (B) 3,245 + 900 - 7,000 = Rs. 1,855 (C) 3,245 + 900 + 7,000 = Rs. 11,115 (D) The entries are to be recorded from cash book angle. Overdraft balance Rs. 3,245 - 900 + 7,000 = Rs. 9,345 

If a cheque is deposited in the bank and not yet collected by bank, the pass book will show _____ balance as compared to the cash book.

  1. lower

  2. higher

  3. equal

  4. fluctuating

Show answer
Correct Option: A
Explanation:

(A)       The cheque recorded in the cash book will increase cash book balance. (B)       The pass book will not show higher balance in this case. (C)       Both the books will show different balances. (D)       The transaction will show different balances.

Dividend collected by banker on the behalf of customer will ______ the bank overdraft.

  1. increase

  2. decrease

  3. make no effect on

  4. sometimes make effect on

Show answer
Correct Option: B
Explanation:

(A)       Dividend collected will increase the positive balance. (B)       The collection by banker will reduce bank overdraft. (C)       Dividend collected will increase the positive balance. (D)       Dividend collected will increase the positive balance.

B.R.S. is a

  1. compulsory requirement

  2. statutory requirement

  3. voluntary requirement

  4. none of these

Show answer
Correct Option: C
Explanation:

The BRS is required to detect errors and frauds for internal control only. Profitability statement and balance sheet are statutory and compulsory requirements.

A wrong credit given by a banker to a customer will result in ______ balance in the cash book as compared to the pass book.

  1. lower

  2. higher

  3. equal

  4. fluctuating

Show answer
Correct Option: A
Explanation:

The credit given by a banker will increase the bank balance. Thus, the cash book will show a lower balance.

When the balance as per cash book and pass book is the same, it means that

  1. there is definitely no error in the two books.

  2. there is no error in the cash book.

  3. there is no error in the pass book.

  4. there may still be some error in the two books.

Show answer
Correct Option: D
Explanation:

There may still be some error which may have been compensated and the balance in the two books is the same.

Which of the following is true about B.R.S.?

  1. It is a part of financial statements.

  2. It is prepared by the bank.

  3. It is prepared by the account holder (business).

  4. It is never required at all.

Show answer
Correct Option: C
Explanation:

(A)       Financial statements are final accounts and balance sheet. (B)       B.R.S. is not required by the bank. (C)       B.R.S. is prepared by the business. (D)       BRS is required to ensure the accuracy and detection of frauds, if any.

A BRS helps to locate the differences between

  1. cash book, cash balance and bank balance.

  2. cash book, bank balance and pass book balance.

  3. pass book balance and bank statement.

  4. All of the above

Show answer
Correct Option: B
Explanation:

It helps to detect the causes of difference between cash book and pass book balance.

If a cheque issued to supplier is not presented for payment to the bank, but wrongly shown in the cash column of cash book, then

  1. pass book balance will be higher than cash book balance

  2. cash book balance will be higher than pass book balance

  3. there would be no difference in the two books

  4. none of these

Show answer
Correct Option: C
Explanation:

Since the cheque has not been presented for payment, so the bank would not subtract any amount from customer’s balance and on the other hand, no amount would be subtracted from the cash book because entry has been made in the cash column. So, there is no difference in the two books.

If the interest credited in the pass book by a bank on 31st March is debited in the cash book on 1st April, then

  1. pass book balance would be higher than cash book balance.

  2. cash book balance would be higher than pass book balance.

  3. there would be no difference in the two books.

  4. none of these

Show answer
Correct Option: A
Explanation:

Since the interest is credited (added) by the bank and on the other hand, no amount is added to the cash book upto 31 March, there would be a difference in the two books.

If a cheque received by a customer has not been paid to a bank, but duly entered in cash book, then

  1. passbook balance would be higher than cash book balance

  2. cash book balance would be higher than passbook balance

  3. there would be no difference in the two books

  4. None of these

Show answer
Correct Option: B
Explanation:

Since the cheque has not been deposited, the bank would not add any amount in the customer's balance, but the amount has already been added to the cash book. Hence, cash book balance would be higher than passbook balance.

Balance 'due' to a customer from bank means

  1. positive balance

  2. overdraft

  3. negative balance

  4. none of these

Show answer
Correct Option: A
Explanation:

(A)       Balance due to the customer is positive balance from customer's view (B)       Overdraft is due to bank by the customer.

The entries recorded in the cash book are made by

  1. bank

  2. business

  3. government

  4. supplier

Show answer
Correct Option: B
Explanation:

The cash book belongs to business. So the recording is done by business.

Which of the following errors can be corrected in the adjusted cash book?

  1. Entry posted twice in the cash book.

  2. Cheques deposited but not credited by the bank.

  3. Cheques issued but not presented for payment.

  4. Wrong credit given by the bank.

Show answer
Correct Option: A
Explanation:

The errors made in the cash book are adjusted in the adjusted cash book The errors made by the bank are not to be adjusted in the cash book

Bank charges adjusted twice in the cash book make the overdraft, as per cash book, 

  1. higher

  2. lower

  3. equal

  4. fluctuating

Show answer
Correct Option: A
Explanation:

The bank charges recorded twice in the cash book will increase the overdraft. If it is a positive balance in the books, the balance is reduced.

Overdraft as per the cash book on 31st March, 2009, was Rs. 20,000. It was found that the bank charges of Rs. 500 recorded in the cash book were not adjusted in the cash book, while other charges of Rs. 800 were recorded twice in the cash book. In addition, a cheque of Rs. 1000 discounted with bank for Rs. 980 was recorded without adjusting the discount. Calculate the pass book overdraft figures.

  1. Rs. 20,320

  2. Rs. 20,280

  3. Rs. 18,720

  4. Rs. 19,720

Show answer
Correct Option: D
Explanation:

(A)       20, 000 + 500 + 800 + 20 = 20, 320 (B)       20, 000 + 500 + 800 - 20 = 20, 280         (C)       20, 000 - 500 - 800 + 20 = 18, 720 (D)       The entries are recorded from the angle of pass book. Overdraft Rs. 20, 000 + 500 – 800 + 20 = Rs.19, 720

The balance as per the pass book is Rs. 9,750. A debit balance of Rs. 4,680 is recorded as Rs. 6,840 in the cash book and a credit entry of Rs. 3,500 on credit side is recorded on the debit side by error. Find the balance as per cash book.

  1. Rs. 14, 590

  2. Rs. 4, 910

  3. Rs. 590

  4. Rs. 18, 910

Show answer
Correct Option: D
Explanation:

(A)       9, 750 - 2, 160 + 7, 000 = Rs. 14, 590 (B)       9, 750 + 2, 160 - 7, 000 = Rs. 4, 910 (C)       9, 750 - 2, 160 - 7, 000 = Rs. 590 (D)       The entries are to be recorded from cash book angle. Balance Rs. 9, 750 + 2, 160 + 7, 000 = Rs. 18, 910

The balance as per the cash book was Rs. 3,520. A cheque of Rs. 12, 000 issued to a supplier was not recorded in the cash book, while a cheque of Rs. 3, 000 was deposited but dishonoured. Find the pass book balance.

  1. Rs. 11,480 overdraft

  2. Rs. 11,480 balance

  3. Rs. 5,480 overdraft

  4. Rs. 5,480 balance

Show answer
Correct Option: A
Explanation:

(A)       The entries are recorded from the angle of pass book. Balance Rs. 3, 520 - 12, 000 - 3, 000 = Rs. 11, 480 overdraft (B)       3, 520 - 12, 000 - 3, 000 = Rs. 11, 480 balance (C)       3, 520 - 12, 000 + 3, 000 = Rs. 5, 480 balance (D)       3, 520 - 12, 000 + 3, 000 = Rs. 5, 480 balance

The overdraft as per pass book is Rs. 3,245. A debit balance of Rs. 2,380 was recorded as Rs. 3,280 in the cash book and a debit entry of Rs. 3,500 was recorded on the credit side by error. Find the balance as per cash book.

  1. Rs. 4,645

  2. Rs. 1,855

  3. Rs. 11,115

  4. Rs. 9,345

Show answer
Correct Option: D
Explanation:

(A) 3,245 - 900 - 7,000 = Rs. 4,645 (B) 3,245 + 900 - 7,000 = Rs. 1,855 (C) 3,245 + 900 + 7,000 = Rs. 11,115 (D) The entries are to be recorded from cash book angle. Overdraft balance Rs. 3,245 - 900 + 7,000 = Rs. 9,345 

Interest on overdraft is _________ by the bank in the pass book.

  1. credited

  2. debited

  3. not adjusted

  4. none of these

Show answer
Correct Option: B
Explanation:

Interest is to be charged from the customer is debited in the pass book.

- Hide questions
ADVERTISEMENT

Find more quizzes from top tags

general knowledge
3615 Quizzes
119858 Questions
 technology
307 Quizzes
36705 Questions
 sports
963 Quizzes
19148 Questions
 history
1187 Quizzes
13475 Questions
 physics
598 Quizzes
13441 Questions
 biology
1160 Quizzes
12174 Questions
 science & technology
551 Quizzes
11015 Questions
 chemistry
490 Quizzes
9892 Questions
 maths
518 Quizzes
9324 Questions
 softskills
0 Quizzes
7131 Questions