Self Studies
Self Studies
Self Studies
Self Studies
Selfstudy
Selfstudy

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
     Bank statement must tally with the balance of ___________.
    Solution
    The cash book serves the purpose of both the cash account and the bank account and shows he balance at the end of the period. Once the cash book is balance, the details with the records of the firm's bank transactions as recorded  by the bank are checked. 
    A bank statement or a bank passbook is a copy of a bank account as shown by the bank records. It enables the bank customers to check their funds in the bank regularly and update their own records of transactions that have occurred. The amount of balance shown in the passbook or the bank statement must tally with the balance as shown in the cash book.
  • Question 2
    1 / -0
    Bank Reconciliation Statement is prepared by__________.
    Solution
    Bank reconciliation statement is generally prepared by the company accountant or the bookkeeper with the purpose to compare the bank's records with your own company records. It is done on monthly basis whenever bank statement arrives.
  • Question 3
    1 / -0
    Bank Reconciliation statement is ___________.
    Solution
    A bank reconciliation statement is prepared to reconcile the bank balance in bank pass book with the balance in the cash book maintained by the business entity. The various causes of differences are given effect in order to match the balances. Therefore, it is just a separate statement to reconcile the transaction and is not related to financial accounting.
  • Question 4
    1 / -0
     Difference of cash book & pass book arise because of ____________.
    Solution
    The differences between the cash book and the bank pass book is caused by:
    1. Timing differences on recording of the transaction.
    2. Errors made by the business or by the bank.
    Timing differences: It occurs when a business compares the balance of its cash book with the balance shown by the bank passbook, there is often a difference, which is caused by the time gap in recording the transactions relating either to payments or receipts.
    Differences caused by errors: Sometimes the difference between the two balances may be accounted for an error on the part of the bank or an error in the cash book of the business. This causes difference between the bank balance shown by the cash book and the balance shown by the bank statement.

  • Question 5
    1 / -0
    The payment side of cashbook is Undercast by Rs 200 when overdraft as per passbook is the starting point ___________.
    Solution
    When overdraft as per pass book is the starting point, those items will be added which makes cash book balance smaller than the pass book balance.
  • Question 6
    1 / -0
    A bank pass book is a copy of the ____________.
    Solution
    Every bank maintains the individual ledger for each of the account of the customer. To give a documentary evidence to the customer, a book is provided to the customer which is called a Bank pass book. Its is an abstract of bank  account of a customer maintained in the bank's ledger.
  • Question 7
    1 / -0
    A bank reconciliation statement is prepared by the _________.
    Solution
    Bank reconciliation statement is generally prepared by the customer of the bank or the bookkeeper of a company with the purpose to compare the bank's records with the company's records.
  • Question 8
    1 / -0
    An amount of Rs. 1000 is debited twice in the pass book. When overdraft as per the cash book is the starting point ____________.
    Solution
    When overdraft as per cash book is the starting point, items which makes cash book balance larger than the pass book balance need to be added.
  • Question 9
    1 / -0
    Debit balance in cash book means __________.
    Solution
    The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals.
  • Question 10
    1 / -0
     Which is caused by the time gap?
    Solution
    The differences between the cash book and the bank pass book are caused by:
    1. Timing differences in recording of the transactions
    2. Errors made by the business or by the bank
    When a business compares the balance of its cash book with the balance shown by the bank passbook, there is often a difference, which is caused by the time gap in recording the transactions relating either to payments or receipts. There are various factors affecting time gap. One of them is, cheques issued by the bank but not yet presented for payment. When cheques are issued by the firm to suppliers or creditors of the firm, these are immediately entered on the credit side of the cash book. However, the receiving party may not present the cheque to the bank for payment immediately. The bank will debit the firm's account only when these cheques are actually paid by the bank. Hence, there is a time lag between the issue of a cheque and its presentation to the bank which may cause the difference between the two balances.
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