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Bank Reconciliation Statement Test - 30

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Bank Reconciliation Statement Test - 30
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  • Question 1
    1 / -0
    A cheque of $$Rs. 5000$$ in favour of Mr. X was wrongly credited by the bank in Mrs. X a/c as $$Rs. 550$$. While reconciling the bank balance of Mrs. X, bank balance as per bank pass book will be _________.
    Solution
    When a cheque in favour of the account holder is credited in his bank account, it would increase his bank balance. Here a cheque of Mr. X of $$Rs. 5000$$ was wrongly credited by bank in Mrs. X a/c as $$Rs. 550$$. So now the pass book  balance of Mr. X would be short by $$Rs. 5000$$ and the pass book balance of Mrs. X would be more by $$Rs. 550$$.
  • Question 2
    1 / -0
    Mr. T issued cheques worth $$Rs. 25,000$$ in March $$2014$$ out of which cheques worth $$Rs. 10,000$$ only were presented for payment by $$31st\ March, 2014$$. Balance as per pass book was $$Rs. 45,000$$. What would be balance as per Cash book?
    Solution
                                     Particulars                                                     Rs.
    Balance as per pass book (Cr.)                                                  $$45000$$
    Less: Cheques issued but not yet presented for payment     $$(15000)$$
                                                                                                      ____________
    Balance as per cash book (Dr.)                                                  $$30000$$
                                                                                                      
  • Question 3
    1 / -0
    Bank column of cash book showed bank balance of $$Rs. 9950$$. While reconciling the bank balance it was noticed that a cheque issued and paid by the bank $$Rs. 5100$$ was wrongly shown on the debit side of bank column as $$Rs. 510$$, bank charges amounting to $$Rs. 210$$, LIC payment of $$Rs. 1200$$ made by the bank as per standing instruction were not accounted in the cash book. Find the adjusted balance of cash as per cash book.
    Solution
    The adjusted balance as per cash book is as follows :

      Particulars Amt in Rs.
     Bank balance as per cash book  $$9950$$
     AddWrong  cheque amount debited     $$510$$
     LessCorrect cheque amount issued   $$5100$$ 
     LessBank charges    $$210$$
     Less LIC payment made by bank on standing instruction   $$1200$$ 
       
      Adjusted balance as per cash book  $$2930$$
  • Question 4
    1 / -0
    When balance as per cash book is the starting point,cheque deposited but not cleared are____for the purpose of reconciliation of balance with bank passbook
    Solution
    When balance as per cash book is the starting point,cheque deposited but not cleared are deducted from cash as per cash book  for the purpose of reconciliation of balance with bank passbook as that amount is not even added in bank passbook.
  • Question 5
    1 / -0
    The bank pass book shows $$Rs. 3,600$$ but the cash book shows a different balance. While analyzing the cause of difference it was notices that total debit side of cash book was carried forward to next page as $$Rs. 1,100$$ instead of $$Rs. 1,000$$. Similarly bills collected by the bank amounting to $$Rs. 1,500$$ were not recorded in the cash book. What would be the balance as per Cash book?
    Solution
    The balance as per cash book is as follows :
     
                              ParticularsAmount in Rs. 
      Balance as per passbook                                                             $$3600$$ 
     AddExcess carried forward in cash book          $$100$$ 
     LessBills collected by bank not recorded in cash book       $$1500$$
      Balance as per cashbook       $$2200$$ 

  • Question 6
    1 / -0
    A Bank Reconciliation Statement is prepared to know the causes for the difference between ___________________.
    Solution
    Bank reconciliation statement is prepared to know the causes of difference between the balance as per bank column of the cash book and the passbook. This is because, both of these accounts show same transactions but with different point of views. The cash book is prepared with the point of view of the customer and the passbook is prepared with the point of view of the bank.
  • Question 7
    1 / -0
    The difference in the balances of both the cash-book and the pass-book can be because of _____________.
    Solution
    Amount deposited into bank is recorded in the bank column of cash book on the debit side and while withdrawals are recorded on the credit side.
    Bank also maintains an account of the account holder in its books of accounts. Deposits by the account holder are recorded on the credit side of the account holder's account and withdrawals are recorded on the debit side of the account holder's account. 
    Balances of cash book and pass book must be same but in some cases the balances of cash book and pass book may vary due to errors in recording the entries either in the cash book or pass book.
  • Question 8
    1 / -0
    Overdraft as per cash book means ___________.
    Solution
    Overdraft means that we have taken loan from the bank. It is shown by negative or credit balance. The cash book is debited when cash comes in and credited when cash goes out. So, overdraft means credit balance in the bank column of the cash book.
  • Question 9
    1 / -0
    Which of the following is/are cause of difference of balance between cash book & the pass book?
    Solution
    Amount deposited into bank is recorded in the bank column of cash book on then debit side and while withdrawals are recorded on the credit side.
    Bank also maintains an account of the account holder in its books of accounts. Deposits by the account holder are recorded on the credit side of the account holder's account and withdrawals are recorded on the debit side of the account holder's account. 
    Balances of cash book and pass book must be same but in some cases the balances of cash book and pass book may vary due to:
    1. Timing difference.
    2. Transactions recorded by bank and not by the business entity.
    3. Errors committed by either bank or business entity.
  • Question 10
    1 / -0
    When overdraft as per pass book is the starting point, bank charges of Rs 100 recorded twice in cash book will be ___________.
    Solution
    Bank charges is an expense for the business and it is credited in the cash book when it is paid. Bank charges charged twice have reduced the balance in the cash book by double amount. So, when overdraft as per pass book is the starting point, Rs. 100 will be added back to negate the effect of second reduction while reconciling the differences between the two balances.
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