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Bank Reconciliation Statement Test - 16

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Bank Reconciliation Statement Test - 16
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  • Question 1
    1 / -0
    An amount of $$Rs. 2,500$$ is debited twice in the bank column of cash book. When credit balance as per pass book is the starting point which one of these adjustments would be done at the time of reconciliation?
    Solution
    When an amount is debited twice in the bank column of the cash book the pass book balance would be showing a lower balance so, in order to reconcile we would have to add the amount to the pass book balance.
    Example:
    Credit Balance as per passbook ........................................................... $$Rs. 5000$$
    Add : Cheque received debited twice in cash book ........................$$Rs. 2500$$
    Debit balance as per bank column of cash book ..............................$$Rs. 7500$$
  • Question 2
    1 / -0
    Entry on credit side of bank pass book implies ___________.
    Solution
    Any entry on the credit side of the pass book implies that the asset of the account holder( the amount reflecting as his bank balance) has increased and the liability of the bank has increased simultaneously. Now, cash/cheque deposited in bank leads to increase in the bank balance of the account holder and hence would be shown on the credit side of the pass book.
  • Question 3
    1 / -0
    A Trial balance may not agree in case of_____.
    Solution
    Error of Omission does not affect Trial Balance.
    If amount is posted correctly into wrong account but on the correct side, still it won't affect the Trial Balance since Trial balance is a list of closing balances of all accounts.
    But in case of wrong balancing of accounts Trial Balance will not agree because if credit and debit side of an account does not tally, it means some error has taken place.
    A wrong amount will not affect Trial Balance since it is made on both the debit and credit side on correct side and in correct account.
  • Question 4
    1 / -0
    Which of these statement is false?
    Solution
    A bank reconciliation statement  :
    • is a statement used to reconcile cash book balance and pass book balance.
    • is a memorandum statement to used only for the internal reporting of the account holder/company.
    • uses cash book and pass book for its preparation. 
  • Question 5
    1 / -0
    Bank column of cash book showed bank balance of $$Rs. 8750$$. While reconciling the bank balance it was noticed that bank column of cash book was undercast by $$Rs. 90$$, bank draft charges of $$Rs. 50$$ and Telephone charges of $$Rs. 550$$ paid by the bank directly as per standing instruction were not accounted for in the Cash book. Find the adjusted balance of cash as per cash book.
  • Question 6
    1 / -0
    Cash receipt of $$Rs. 5100$$ was wrongly posted to bank column of cash book as $$Rs. 510$$. Bank balance as per cash book will be ________.
    Solution
    Cash receipt is to entered in the cash column of the cash book and no entry of this would be shown in the pass book as the bank balance is not affected due to this transaction. But, here cash receipt of $$Rs. 5100$$ was wrongly posted in bank column of the cash book as $$Rs.510$$ which would result in cash book showing a bank balance more by $$Rs. 510$$ .
  • Question 7
    1 / -0
    Cash receipt of $$Rs. 5100$$ was wrongly posted to credit side bank column of cash book as $$Rs. 510$$. bank balance as per cash book will be ________.
    Solution
    Cash receipt is to entered on the debit side of the cash column in the   cash book and no entry of this would be shown in the pass book as the bank balance is not affected due to this transaction. But, here cash receipt of $$Rs. 5100$$ was wrongly posted on the credit side of the  bank column in the  cash book as $$Rs.510$$. Any entry on the credit side of the bank column in the cash book indicates payment through bank balance, so the error occurred here would lead to the bank balance as per cash  book being less by  $$Rs. 510$$ .
  • Question 8
    1 / -0
    If we take balance as per cash book, _________ will be added to get balance as per pass book.
    Solution
    Entry of interest given by bank would be first entered in the pass book by the bank and only after that the account holder would be able to enter the same in the cash book, so at this given point of time the pass book balance would be higher than cash book . Interest given by the bank is an income to the account holder. So, if the balance as per cash book is the starting point then we would have to add interest given by bank to reach the pass book balance.
  • Question 9
    1 / -0
    The cash book shows a balance of $$Rs. 11,000$$ which was different from the pass book balance. The difference is found to be due to a credit entry in pass book amounting to $$Rs. 2,000$$ for direct payment by a customer and a debit of $$Rs. 250$$ for bank charges on collection of outstation cheques and other services. What would be the balance as per bank pass book?
    Solution
    The reconciliation of cash book and pass book balance is as follows :

     Particulars Amount in Rs. 
     Balance as   per cash book $$11000$$ 
     AddDirect payment by customer $$2000$$ 
    Less Bank Charges $$250$$ 
      Balance as per pass book$$12750$$ 
  • Question 10
    1 / -0
    Debit balance as per cash book means _________.
    Solution
    When we say that cash book has a debit balance it means that the debit side of the cash book is more than the credit side. On the debit side we record cash receipts and on the debit side we record cash payments. So if there is a debit balance as per cash book then it means there is cash balance with us.
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