Self Studies
Self Studies
Self Studies
Self Studies

Bank Reconciliation Statement Test 10

Result Self Studies

Bank Reconciliation Statement Test 10
  • Score

    -

    out of -
  • Rank

    -

    out of -
TIME Taken - -
Self Studies

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Self Studies Self Studies
Weekly Quiz Competition
  • Question 1
    1 / -0
    When the balance as per pass book is the starting point, cheques not presented for payment are ________.
    Solution
    Cheques not presented are those which have been drawn and entered as payment in the cash book but not yet been presented to  the bank, so the pass book balance would be higher than the cash book balance.
    Therefore, when the balance as per pass book is the starting point, cheques not presented are subtracted in the bank reconciliation statement.
  • Question 2
    1 / -0
    The businessman prepares the _______ and the _______ is prepared by the bank.
    Solution
    To record cash and bank transactions, every businessman prepares cash book with cash and bank columns in it and in correspondence to that bank maintain its customers' account in its books of account which is a passbook.
    Therefore, cash book is prepared by businessman and passbook is prepared by the bank.
  • Question 3
    1 / -0
    A Bank Reconciliation Statement is prepared with the help of ____________ .
    Solution
    To reconcile means to find out the differences if any between two or more things and eliminate it. Now, in case of any banking transactions for each deposit or withdrawal the entry is recorded at two places.
    • The bank statement maintained by the bank and
    • The bank column of the cash book maintained by the account holder.
    These two  are opposites of each other which means if one shows credit balance then the other would reflect a debit balance of the exact same amount. But due to reasons like timing differences the balances of both these  do not match. 
    So, to reconcile the same a bank reconciliation statement is prepared. The aim while preparing a bank reconciliation statement is to take either bank statement balance or balance of the bank column of cash book  as the starting point, to add or deduct certain entries and reach the balance of the other book ie, if bank column of the cash book balance is the starting point then after reconciling we should reach at bank statement balance.
  • Question 4
    1 / -0
    Favourable balance as per cash book means which of the following?
    Solution
    The cash book is a account statement as maintained by the account holder. So if the cash book reflects a debit balance it means that the account is in the nature of a debtor/receivable for the account  holder.
    The debit side of the cash book indicates receipts whereas the debit side indicates payments/withdrawals. A favourable balance in this case would be where the receipts are more than the payments so as to say when the cash book shows a debit balance.

  • Question 5
    1 / -0
    Which of the following is not the salient features of bank reconciliation statement?
    Solution
    Bank reconciliation statement is a statement prepared by the bank account holder on a particular day to reconcile the bank balance as per cash book with the balance as per passbook showing entries causing the difference between the two balances.
    Following are the features of bank reconciliation statement:
    1. It is prepared by the customer i.e., holder of the account.
    2.It contains a complete and satisfactory explanation of the difference in balance as per the cash book and passbook.
    3.Normally it is prepared on closing date of accounts.
    4.It is neither journal nor ledger.
  • Question 6
    1 / -0
    A bank reconciliation statement is a _________.
    Solution
    A Bank Reconciliation Statement is an independent statement prepared to reconcile the balance between the bank column of cash book and pass book.
    It is neither a part of cash book nor pass book.
    A Cash flow statement may be a part of financial statement but not Bank Reconciliation Statement.
  • Question 7
    1 / -0
    A Bank Reconciliation Statement is prepared by __________.
    Solution
    Whenever money is deposited in bank  or withdrawn from bank it is recorded in two places.
    • The pass book maintained by the bank
    • The cash book (bank column ) maintained by the account holder.
    These two books are opposites of each other which means if one shows credit balance then the other would reflect a debit balance of the exact same amount. But due to reasons like timing differences the balances of both these books do not match. 
    Now, it is not practical and feasible for the bank to reconcile the account balances of each and every account holder so, the account holder prepares a bank reconciliation statement for his account maintained in the bank.
  • Question 8
    1 / -0
    Which of the following is/are significance of Bank Reconciliation Statement?
    Solution
    Bank reconciliation statement- It is a statement prepared on a particular day to reconcile the bank balance as per cash book with the balance as per passbook showing entries causing the difference between the two balances.
    Following are the significance of Bank reconciliation statement:
    1. Bank reconciliation statement helps in ensuring the accuracy of the balances shown by the cash book and pass book.
    2. Bank reconciliation statement helps in identifying the missing transactions which are not yet recorded.
    3. Bank reconciliation statement helps in updating the cash books of the company.
    4. Bank reconciliation statement helps in verifying the accounts as most companies use double-entry bookkeeping facility.
    5. Bank reconciliation statement helps  in pointing out the mistakes in cash book and passbook.

  • Question 9
    1 / -0
    A bank reconciliation statement is prepared by _________.
    Solution
    Whenever money is deposited in bank  or withdrawn from bank it is recorded in two places.
    • The pass book maintained by the bank
    • The cash book (bank column ) maintained by the account holder.
    These two books are opposites of each other which means if one shows credit balance then the other would reflect a debit balance of the exact same amount. But due to reasons like timing differences the balances of both these books do not match. 
    Now, it is not practical and feasible for the bank to reconcile the account balances of each and every account holder so, the account holder prepares a bank reconciliation statement for his account maintained in the bank.
  • Question 10
    1 / -0
    When drawing up a bank reconciliation statement, if you start with a debit balance as per the pass book, the cheques issued but not presented for payments should be _________.
    Solution
    Cheques issued but not presented for payment are entered in the cash book at the moment the cheques are drawn but would not be reflected in the pass book and so the cash book balance would be higher.
    Therefore, when drawing up a bank reconciliation statement, if you start with a debit balance as per pass book, the cheques issued but not presented for payments should be added to reach the cash book balance
Self Studies
User
Question Analysis

  • Correct -

  • Wrong -

  • Skipped -

My Perfomance
  • Score

    -

    out of -
  • Rank

    -

    out of -
Re-Attempt Weekly Quiz Competition
Self Studies Get latest Exam Updates
& Study Material Alerts!
No, Thanks
Self Studies
Click on Allow to receive notifications
Allow Notification
Self Studies
Self Studies Self Studies
To enable notifications follow this 2 steps:
  • First Click on Secure Icon Self Studies
  • Second click on the toggle icon
Allow Notification
Get latest Exam Updates & FREE Study Material Alerts!
Self Studies ×
Open Now