Bank Reconciliation Statement Test 12

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Bank Reconciliation Statement Test 12

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Weekly Quiz Competition

Question 1

1 / -0

Bank balance as per cash book (Dr.)Rs.$$24,450$$. A comparison of pass book and cash book revealed the following
-Bank charges Rs.$$200$$ was not entered in cash books.
-Cheques amounting to Rs.$$250$$ has been dishonored but nor recorded in cash book.
Balance as per pass book will be _________________.

Rs.$$25,000$$

Rs.$$25,900$$

Rs.$$24,000$$

Rs.$$25,400$$

Solution

Particulars	+	-
Balance as per cash book (Dr.)	24,450
Bank charges not entered in cash book		200
Cheque Dishonored but not recorded in cash book		250
Balance as per Pass book (Cr.)/ Favourable balance		24,000

Question 2

1 / -0

On $$31$$st December balance as per pass book(Cr.) Rs.$$50,900$$. A comaparison of pass book and cash book revealed the following.
-Cheque deposited for Rs.$$1,000$$ was not credited in pass book.
-Out of cheques of Rs.$$10,000$$ issued only cheques amounting to Rs.$$7,500$$ were presented for payments.
Balance as per cash book will be ___________.

Rs.$$55,800$$

Rs.$$47,400$$

Rs.$$49,400$$

Rs.$$52,400$$

Solution

The reconciliation is as follows :

	Particulars	Amount in Rs.
	Balance as per pass book as on 31 st December (Cr.)	$$50900$$
Add	Cheque deposited but not credited	$$1000$$
Less	Cheque issued but not presented for payment	$$2500$$
	Balance as per cash book as on 31 st December (Dr.)	$$49400$$

Question 3
1 / -0

In balance sheet bank balance as per ______ appears.

A
pass book

B
cash book

C
adjusted cash book

D
none of above

Solution

An adjusted cash book refers to the cash book which has been adjusted for the discrepancies and time differences found out while reconciling the cash book and the pass book. So, when the bank balance is reported in the balance sheet it is the reconciled one taken from the adjusted cash book.

Question 4

1 / -0

The pass book of N Ltd. showed credit balance of Rs.$$9,000$$. A comparison of pass book and cash book revealed the following:
-Cheques amounting to Rs.$$375$$ has been dishonoured but not recorded in cash book.
-Total of credit column of cash was under cast by Rs.$$712.50$$.
Balance as per cash book will be ________.

Rs.$$9,337.50$$

Rs.$$8,662.50$$

Rs.$$10,087.50$$

Rs.$$7,912.50$$

Solution

Particulars	+	-
Balance as per pass book (Cr.)	9,000
Cheques dishonoured but not entered in cash book	375
Amount by which credit side of cash book is undercast	712.50
Balance as per cash book	10,087.50

Question 5
1 / -0

Some of the transaction that is dependent on bank statement are ____________.

A
collection charges

B
dividends received

C
pre-scheduled payments

D
all of the above
Solution
- Collection charges are directly charged by the bank for providing specified services and this amount is charged completely on the discretion of the bank. This amount can be recorded in the books of accounts only when we have the bank statement and not before that.
- In case of date of declaration of dividend and the date of actual receipt of it there would a difference so we need the bank statement for the actual date of receipt.
- Pre-scheduled payments are the expense bills to be paid or subscription to be paid on timely intervals. They are scheduled as per the account holders and are therefore executed by the bank automatically. To record such transactions bank statement/pass book is necessary.
Question 6
1 / -0

The purpose of preparing a bank reconciliation statement is to ____________.

A
Ascertain that the difference between the cash book balance and the bank statement balance has been accounted for

B
Correct errors in the cash book or errors in the bank statement

C
Amend the balance of the bank statement of the firm

D
Amend the balance in the cash book of the firm

Solution

The purpose of preparing a bank reconciliation statement is to amend the balance of the bank statement of the firm.Such amendment is required because of various errors of omissions, casting errors and timing differences arising during accounting the bank transactions.
bank reconciliation statement is the only way to solve these errors and reflect a proper bank balance.
Question 7
1 / -0

It is not true for bank reconciliation statement __________.

A
that the bank balance as per cash book and pass book are same

B
prepared on a particular date

C
a single transaction is recorded both in bank pass book as well as bank cash book.

D
the transaction in the cash book one recorded as per client new point.

Solution

Bank reconciliation statement is prepared to Reconcile the differences between the balances as per cash book (bank column) and passbook (bank statement) by identifying the causes of differences between the two for a particular period. If the two balances match, then there is no need for a bank reconciliation statement. So, it is true that for a bank reconciliation statement, a single transaction is recorded both in bank passbook and bank cash book or the transactions recorded in cash book are from the point of view of the client/ customer and it is prepared on a particular date. But, it is not true that the balance as per bank column in the cash book and passbook are same for preparing bank reconciliation statement because if the two balances are same, then bank reconciliation statement is not required.
Question 8
1 / -0

Which of the following will require adjustment of the cash book balance?

A
Cheque deposited but not cleared.

B
Cheque issued but not presented for payments.

C
Under casting of debit side of bank column of cash book.

D
All of the above.

Solution

Cheque deposited but not cleared and cheque issued but not presented for payment, both are timing differences and would get cleared and adjusted automatically. Whereas, under casting of debit side of bank column of cash book is an clerical error and it would have to be adjusted so as to reflect the proper bank balance as per cash book.
Question 9
1 / -0

Which of the following will require adjustment of the cash book balance?

A
Error in cash book.

B
Error in pass book.

C
Cheque issued but not presented for payments.

D
All of the above.

Solution

Cheque issued but not presented for payment arises due to timing difference and would get cleared and adjusted automatically. Whereas an error in cash book such as over casting of the credit side of the bank column will require adjustment of the cash book balance.
Question 10
1 / -0

Bank reconciliation sometimes points to the need for adjusting entries. Invariably how should it be done?

A
The reconciliation of the ending balance per the bank statement to the adjusted cash balance.

B
The reconciliation of the cash balance per the company records to the adjusted cash balance.

C
Both a and b

D
None of the above.

Solution

Bank statement provided by the bank shows the balance as on date.Hence, bank column of cash book might not reflect all the entries as shown in bank pass book since some entries only reflect in bank pass book.Adjustments are made in business's cash book to arrive at the final balance available with the business.

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Bank Reconciliation Statement Test 12

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Bank Reconciliation Statement Test 12

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Question 1

Rs.$$25,000$$

Rs.$$25,900$$

Rs.$$24,000$$

Rs.$$25,400$$

Solution

Question 2

Rs.$$55,800$$

Rs.$$47,400$$

Rs.$$49,400$$

Rs.$$52,400$$

Solution

Question 3

pass book

cash book

adjusted cash book

none of above

Solution

Question 4

Rs.$$9,337.50$$

Rs.$$8,662.50$$

Rs.$$10,087.50$$

Rs.$$7,912.50$$

Solution

Question 5

collection charges

dividends received

pre-scheduled payments

all of the above

Solution

Question 6

Ascertain that the difference between the cash book balance and the bank statement balance has been accounted for

Correct errors in the cash book or errors in the bank statement

Amend the balance of the bank statement of the firm

Amend the balance in the cash book of the firm

Solution

Question 7

that the bank balance as per cash book and pass book are same

prepared on a particular date

a single transaction is recorded both in bank pass book as well as bank cash book.

the transaction in the cash book one recorded as per client new point.

Solution

Question 8

Cheque deposited but not cleared.

Cheque issued but not presented for payments.

Under casting of debit side of bank column of cash book.

All of the above.

Solution

Question 9

Error in cash book.

Error in pass book.

Cheque issued but not presented for payments.

All of the above.

Solution

Question 10

The reconciliation of the ending balance per the bank statement to the adjusted cash balance.

The reconciliation of the cash balance per the company records to the adjusted cash balance.

Both a and b

None of the above.

Solution

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