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Bank Reconciliation Statement Test - 28

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Bank Reconciliation Statement Test - 28
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  • Question 1
    1 / -0
    One outgoing Cheque of Rs. 112 recorded in the Cash Book but omitted to be sent to creditor. When the balance as per Cash Book is the starting point ___________________.
  • Question 2
    1 / -0
    Deposit column of pass book showed a wrong entry of Rs. 112. When the balance as per Cash Book is the starting point __________ .
    Solution
    Since, a wrong deposit of Rs. 112 is shown in the paasbook because of which the bank balance as per the paasbook increased, therefore, such amount shall also be added to bank balance as per cashbook in the bank reconciliation statement to reconcile both the balances.
  • Question 3
    1 / -0
    Withdrawl column of the Pass Book showed a wrong entry of Rs. 112. When the balance as per Cash Book is the starting point __________.
  • Question 4
    1 / -0
    One outgoing cheque of Rs. 112 recorded as Rs. 121 in the Cash Book. (Note: This cheque was presented in the Bank). When the balance as per Cash Book is the starting point.
  • Question 5
    1 / -0
    Which of the following accounts is increased by credit entries?
    Solution
    Bank overdraft is a bank loan taken for short duration and is considered as current liability. If any further amount is withdrawn from this account, this will increase the amount of bank overdraft.
  • Question 6
    1 / -0
    When the overdraft as per Cash Book is the starting point, a cheque of Rs.1,00,000 deposited into Bank but not recorded in Cash Book will be:
    Solution
    Bank reconciliation statement is prepared by taking one of the balances of cash book or pass book, accommodating all the differences between the two and finally arriving at the other balance. Cheque deposited directly into the bank, without recording in the cash book increases the balance as per pass book as compared to cash book. So, when overdraft balance as per cash book is the starting point, a cheque of Rs. 1,00,000 will be added to arrive at the balance as per pass book.
  • Question 7
    1 / -0
    The payment side of the cash book is undercast by Rs.200. When overdraft as per pass book is the starting point, to get the overdraft as per cash book ___________.
    Solution
    If the starting point is pass book with a debit balance i.e. overdraft, item which makes cash book balance larger than the pass book balance need to be deducted.
  • Question 8
    1 / -0
    __________ is the reason for bank pass book showing less balance than Cash book.
    Solution
    There are various reasons for bank pass book showing less than cash book. 
    • Direct payments made by bank on behalf of the customers: Sometimes the customers give standing instructions to the bank to make some payment regularly on stated days to the third parties. For example, telephone bills, insurance premium, rent, taxes, etc. are directly paid by the bank on behalf of the customer and  debited to the account.
    • Also interest on loans or overdraft will be debited by the bank directly which is not recorded in the cash book.As a result, the balance as per the bank passbook would be less than the one shown in the cash book.
  • Question 9
    1 / -0
    When transaction is recorded in either of the book earlier and in other book later the difference is termed as ____________.
    Solution
    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. When a transaction is recorded in either of the book earlier and in other book later, the difference is termed as timing difference. The factors affecting time gap includes:
    1. Cheques issued by the bank but not yet presented for payment
    2. Cheques paid into the bank but not yet collected
    3. Direct debits made by the bank on behalf of the customer
    4. Amounts directly deposited in the bank account
    5. Interest and dividends collected by the bank
    6. Direct payments made by the bank on behalf of the customers
  • Question 10
    1 / -0
    Difference in balance as per pass book and balance as per cash book due to ________ is/are termed as timing difference.
    Solution
    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. The factors affecting time gap includes:
    1. Cheques issued by the bank but not yet presented for payment
    2. Cheques paid into the bank but not yet collected
    3. Direct debits made by the bank on behalf of the customer
    4. Amounts directly deposited in the bank account
    5. Interest and dividends collected by the bank
    6. Direct payments made by the bank on behalf of the customers
    7. Cheques deposited/bolls discounted dishonored

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