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BANK RECONCILATION
STATEMENT
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1. Bank reconciliation statement is
__________
a)A ledger account
b)A part of cash book with bank column
c) A statement showing the causes of
difference between the cash book and pass
book balances
d)All of the above
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Answer:
A statement showing the causes of differencebetween the cash book and pass book balances
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2. Bank reconciliation statement may be
prepared with the balance of ________
a)Cash book
b)Pass book
c) Entire cash book or pass book
d)Neither cash book nor pass book
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Answer:
Entire cash book or pass book
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3. Debit balance of pass book shows
__________
a)Deposit (plus) balance
b)Overdraft (minus) balance
c) Either deposit or overdraft balance
d)Neither deposit nor overdraft balance
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Answer:
Overdraft (minus) balance
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4. Pass book is a ________
a)Copy of receipts and payment of the firm
b)Copy of the firms ledger account
maintained by the bank
c) Copy of the bank transactions entered in
the cash book
d)Record of all transactions
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Answer:
Copy of the firms ledger account maintained bythe bank
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5. Overdraft facility is available only in
_________
a)Savings bank account
b)Current account
c) Recurring deposit account
d)Fixed deposit account
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Answer:
Current account
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6. The bank balance is treated as plus
(deposit) balance, if it is a _________
a)Debit balance of cash book
b)Credit balance of pass book
c) Both a & b
d)Credit balance of cash book
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Answer:
Both a & b
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7. Bank column in cash book shows a credit
balance. What does it mean?
a)There must be un-deposited cash
b)There is overdraft balance
c) There must be some error in recording
d)Cashier has embezzled cash
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Answer:
There is overdraft balance
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8. A Bank reconciliation statement is
prepared to know the causes for differencebetween ____
a)The balance as per cash column of cash
book & pass book
b)The balance as per bank column of cash
book & pass book
c) Both a & b
d)Neither a or b
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Answer:
The balance as per bank column of cash book &pass book
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9. A Bank reconciliation statement is
prepared by _________
a)Bank
b)Customer of the bank
c) Creditors
d)Government
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Answer:
Customer of the bank
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10. A Bank reconciliation statement is
prepared with the help of __________
a)Bank pass book and bank column of cash
book
b)Bank pass book and cash column of cash
book
c) Bank pass book and petty cash book
d)All the above
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Answer:
Bank pass book and bank column of cash book
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11. If you start with cash book deposit
balance in the Bank reconciliation statement,which item or items will you add?
a)Cheques issued but not yet presented for
payment
b)Amounts directly deposited by the
customer into bank
c) Interest allowed by the bank
d)All the above
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Answer:
All the above
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12. If you start with cash book deposit
balance in the Bank reconciliation statement,
which item or items will you deduct?
a)Dishonored cheque
b)Discounted bills dishonored
c) Dividend on shares collected by bank
d)Both a & b
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Answer:
Both a & b
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13. The main purpose of preparing a Bank
reconciliation statement is ________
a)To know cash book balance
b)To know pass book balance
c) To compare the transactions in the cash
book and pass book
d)To reconcile balance as per cash book with
the pass book
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Answer:
To reconcile balance as per cash book with thepass book
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14. Bank reconciliation statement is a
_________
a)Separate statement
b)Ledger account
c) Sub division of journal
d)Part of cash book
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Answer:
Separate statement
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15. Unfavorable bank balance means
_________
a)Debit balance in cash book
b)Debit balance in pass book
c) Credit balance in cash book
d)Both b & c
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Answer:
Both b & c
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16. A cheque received and deposited in the
bank on the same day is recorded in the
_________
a)Bank column of cash book
b)Cash column of cash book
c) Both a & b
d)Discount column of cash book
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Answer:
Bank column of cash book
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17. An amount of Rs. 5000 is debited twice
in the pass book. When overdraft balance as
per the cash book is the starting point
_______
a)Rs. 5000 will be added
b)Rs. 5000 will be deducted
c) Rs. 10000 will be added
d)Rs. 10000 will be deducted
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Answer:
Rs. 5000 will be added
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18. Which one of the following statements is false?
a) Pass book is a copy of customers account in theledger of the bank
b) Normally, if the pass book shows credit balance, the
cash book shows debit balancec) Unfavorable bank balance means debit balance in
pass book and credit balance in cash book
d) Unfavorable bank balance means credit balance inpass book and debit balance in cash book
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Answer:
Unfavorable bank balance means credit balancein pass book and debit balance in cash book
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19. Which one of the following statements
is false?
a)Debit balance in pass book means overdraft
b)Bank passbook is a copy of customers
account in the books of bank
c) For a dishonored cheque, bank account is
debited
d)Debit entry in pass book means a credit
entry in cash book
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Answer:
For a dishonored cheque, bank account isdebited
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