Bank Reconciliation Statement Test

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Bank Reconciliation Statement Test - 19

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Weekly Quiz Competition

Question 1
1 / -0

When balance as per Cash Book is the starting point, interest charged by Bank is ____________.

A
added in the bank reconciliation statement

B
subtracted in the bank reconciliation statement

C
not required to be adjusted in the bank reconciliation statement

D
None of the above

Solution

Interest charged by bank would lead to decrease in the bank balance but, it would not be entered in the cash book until and unless the account holder views it in his pass book.
So when the balance as per cash book is the starting, interest charged by bank is subtracted in the bank reconciliation statement to reach the pass book balance.
Question 2
1 / -0

When businessman takes money from bank out of its account it is known as _________.

A
withdrawal

B
deposit

C
expenses

D
liability

Solution

The bank is a keeper of our money and safeguards it also paying an interest.
If any money is taken from the bank it is called 'withdrawal', which is the right of the account holder, to withdraw as per his wish within the limits as prescribed by the respective banks.
Question 3
1 / -0

________ is a copy of the clients account in the bank's ledger.

A
Cash book

B
Pass book

C
Cheque book

D
Pay-in-slip book

Solution

The pass book is just a copy of the account statement as maintained by the bank. So if the pass book reflects a debit balance it means that the account is in the nature of a debtor/receivable for the bank and it would be the opposite for the account holder. From his point of view he would be having a negative balance in his account and hence a liability/payable.
Question 4
1 / -0

Unfavourable balance as per pass book means which of the following?

A
Dr. balance in cash book.

B
Cr. balance in pass book.

C
Bank overdraft.

D
None of the above.

Solution

The cash book is a account statement as maintained by the account holder. So if the cash book reflects a credit balance it means that the account is in the nature of a creditor/payable for the account holder and it would be the opposite for the bank.
The pass book is a copy of the account statement as maintained by the bank. So if the pass book reflects a debit balance it means that the account is in the nature of a debtor/receivable for the bank and it would be the opposite for the account holder.
So if there is unfavourable balance as per pass book with respect to the account holder, it means that the pass book is showing a debit balance which is also known as bank overdraft.
Question 5
1 / -0

Unfavourable balance as per cash book means which of the following?

A
Cr. balance in pass book.

B
Dr. balance in cash book.

C
Bank overdraft.

D
None of the above.

Solution

The cash book is an account statement as maintained by the account holder. So if the cash book reflects a credit balance it means that the account is in the nature of a creditor/payable for the account holder and it would be the opposite for the bank.
The pass book is a copy of the account statement as maintained by the bank. So if the pass book reflects a debit balance it means that the account is in the nature of a debtor/receivable for the bank and it would be the opposite for the account holder.
So if there is unfavourable balance as per cash book it means that the cash book is showing a credit balance which is also known as bank overdraft.
Question 6
1 / -0

Entry on the credit side of pass book implies ____________.

A
Withdrawal

B
Deposit

C
Expenses

D
Liability
Question 7
1 / -0

When the balance as per pass book is the starting point, cheques not presented for payment are ________.

A
added in the bank reconciliation statement

B
subtracted in the bank reconciliation statement

C
ignored while preparing the bank reconciliation statement

D
neither of the above

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 8
1 / -0

The businessman prepares the _______ and the _______ is prepared by the bank.

A
Pass book, Cash book

B
Cash book, Pass book

C
cash book, cash book

D
Pass book, Pass book

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 9
1 / -0

________ is a statement which is prepared as on a particular date to reconcile the bank balance as per cash book with balance as per pass book by showing all the causes of difference between the two.

A
A bank statement

B
A bank reconciliation statement

C
Income Statement

D
Position statement
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 on a particular date 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

A bank reconciliation statement is a statement prepared to reconcile________.

A
cash balance as per cash book and bank balance as per pass book

B
bank balance as per cash book and bank balance as per pass book

C
both (A) & (B)

D
none of the above
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.

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Re-Attempt Weekly Quiz Competition

Bank Reconciliation Statement Test - 19

Result

Bank Reconciliation Statement Test - 19

Score

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Rank

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SHARING IS CARING

Question 1

added in the bank reconciliation statement

subtracted in the bank reconciliation statement

not required to be adjusted in the bank reconciliation statement

None of the above

Solution

Question 2

withdrawal

deposit

expenses

liability

Solution

Question 3

Cash book

Pass book

Cheque book

Pay-in-slip book

Solution

Question 4

Dr. balance in cash book.

Cr. balance in pass book.

Bank overdraft.

None of the above.

Solution

Question 5

Cr. balance in pass book.

Dr. balance in cash book.

Bank overdraft.

None of the above.

Solution

Question 6

Withdrawal

Deposit

Expenses

Liability

Question 7

added in the bank reconciliation statement

subtracted in the bank reconciliation statement

ignored while preparing the bank reconciliation statement

neither of the above

Solution

Question 8

Pass book, Cash book

Cash book, Pass book

cash book, cash book

Pass book, Pass book

Solution

Question 9

A bank statement

A bank reconciliation statement

Income Statement

Position statement

Solution

Question 10

cash balance as per cash book and bank balance as per pass book

bank balance as per cash book and bank balance as per pass book

both (A) & (B)

none of the above

Solution

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