Bank Reconciliation Statement-Practice Problems

FINPREP – Practice Problems Chapter Name Bank Reconciliation Statement Chapter No. 3

FINPREP A CPT preparatory program from

Practice Problems Subject: Accounting

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FINPREP – Practice Problems Chapter Name Bank Reconciliation Statement Chapter No. 3 Bank Reconciliation Reconciliation Statement 3.1. Bank Pass Book or Bank Statement:

1. A bank pass book is a copy of a) The Cash column of a cus tomer’s cash book b) The bank column of a customer’s cash book c)

The customer’s account in the bank’s ledger

d) The bank’s account in Customer’s ledger 3.3. Nature of Balances:

2. Debit balance in the cash book means: a) Overdraft as per Pass Book b) Credit balance as per Pass Book c)

Overdraft as per Cash Book

d) Neither of there 3.4. Bank Reconciliation Statement (BRS):

3. A Bank Reconciliation statement is a a) Part of cash book b) Part of Bank Account c)

Part of Financial statements

d) None of the above 4. Bank Reconciliation statement is prepared by: a) Bank b) Customer of bank c) Creditor of a business d) Neither of the three 5. A bank reconciliation statement is prepared to find out the causes of the difference between. a) The balance as shown by the cash column of t he cash book with the balance shown by its bank column. b) The balance as shown by the cash column of t he cash book with the balance shown by the pass book. c)

The balance shown by the bank column of the c ash book with the balance shown by the pass book.

d) None of the above


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6. A bank reconciliation statement reconciles the a) Ledger with the Journal b) Petty cash book with the bank account c)

Day books with the bank statement

d) Bank statement with the cash book 7. Following is not the salient feature of bank reconciliation statement: a) Any undue delay in the clearance of cheque will be shown up by the reconciliation b) Reconciliation statement will help in finding the person doing any fraud. c)

Reconciliation is done by the bankers

d) It helps in finding out the actual position of the bank balance. 3.5. Reasons for Difference Between Pass Book and Cash Book:

8. The difference in the balances of both the cash-book and the pass-book can be because of a) Errors in recording the entries either in the cash-book or pass-book. b) Same entry recorded in either of the book earlier and in the other book later. c)

Complete omission of an entry in cash book or pass-book

d) All of the above 9. Payment done by the account holder through issuing a c heque is entered ina) The pass-book at the time of issuing the cheque b) The cash-book at the time of pre senting the cheque to the bank for payment c)

The pass-book at the time of presenting the cheque to the bank for payment

d) The none of these 10. Direct payment to the third party on behalf of the account holder is entered ina) The cash-book when the amount is paid by the bank b) The cash-book when the entry is posted in the pass-book c)

The pass-book when the amount is paid by the bank

d) None of these 3.6. Preparation of BRS:

11. A debit balance of Rs.1, 000 has been brought forward as a credit balance of Rs.100 on the next page in the pass book. To ascertain the balance as per cash book. a) Rs.900 Should be added to the balance as per Pass Book b) Rs.900 should be subtracted from the balance as per Pass Book. c)

Rs.1, 100 should be added to the balance as per Pass Book.

d) None of the above


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FINPREP – Practice Problems Chapter Name Bank Reconciliation Statement Chapter No. 3 12. The bank statement shows as overdrawn balance o f Rs2, 000. A cheque for Rs.500 drawn in favour of a creditor has not yet been presented for payment. When the cre ditor present the cheque for payment, the bank balance will be a) Rs.1,500 b) Rs.2,500 c)

Rs.1,500 (Overdrawn)

d) Rs.2,500 (Overdrawn) 13. The cash book showed an overdraft of Rs.3000 as cash at bank, but the pass book made up on the same date showed that cheque of Rs.200, Rs.100 and Rs.250 respectively had not been presented for payments: and the cheque of Rs.800 paid into account had not been cleared. The balance as per the cash book will be a) Rs.2,200 b) Rs.4,350 c)

Rs.3,250

d) Rs.2,750 14. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point, Uncollected cheques are: a) Added b) Subtracted c)

Not required to be adjusted

d) None of these 15. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point, un-presented cheque are: a) Added b) Subtracted c)


d) None of these 16. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point, Bank charges and interest charges are: a) Added b) Subtracted c)


d) None of these 17. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point, Interest allowed by bank are: a) Added b) Subtracted c)


d) None of these For Private Circulation to registered students.

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FINPREP – Practice Problems Chapter Name Bank Reconciliation Statement Chapter No. 3 18. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the t he starting point, Direct payment are: a) Added b) Subtracted c)


d) None of these 19. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the t he starting point, Direct collection by bank are: a) Added b) Subtracted c)


d) None of these 20. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the t he starting point, dishonor of discounted B/R are: a) Added b) Subtracted c)


d) None of these 21. While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point, Cheque recorded but omitted to be banked are: a) Added b) Subtracted c)


d) None of these 22. A Cheque of Rs.112 received from a debtor recorded in the cash book but omitted to be banked. When balance as per Cash Book is the starting point. a) Rs.112 to be added b) Rs.112 to be subtracted c)

No adjustment is required

d) None of these 23. A Cheque of Rs.112 received from a debtor deposited but omitted to be recorded in the cash book (Note: Bank has collected and cre dited this cheque) When balance as per Cash Book is the starting point. a) Rs.112 to be added b) Rs.112 to be subtracted c)


d) None of these


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FINPREP – Practice Problems Chapter Name Bank Reconciliation Statement Chapter No. 3 24. A Cheque of Rs.112 received from a debtor recorded twice in the cash book. When the balance as per Cash Book is the t he starting point. a) Rs.112 to be added b) Rs.112 to be subtracted c)


d) None of these 25. A Cheque received from a debtor for Rs.112 recorded as Rs.121 in the cash column in the cash book (Note: Bank has collected and cr edited this cheque) When the balance as per Cash Book is the starting point a) Rs.112 to be added b) Rs.121 to be added c) Rs.9 to be subtracted d) Rs.112 to be subtracted 26. A cheque received from a debtor for Rs.112 recorded as Rs.121 in the Cash Book. (Note: Bank has collected and credited this c heque). When the balance as per Cash Book in the starting point a) Rs.112 to be added b) Rs.121 to be added c) Rs.9 to be subtracted d) Rs.112 to be subtracted 27. 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 a) Rs.112 to be added b) Rs.112 to be subtracted c)


d) None of these 28. One outgoing cheque of Rs.112 sent to a creditor but omitted to be recorded in the Cash Book. (Note: This cheque was present in the bank) When the balance as per Cash Book is the starting point a) Rs.112 to be added b) Rs.112 to be subtracted c)


d) None of these 29. One outgoing cheque of Rs.112 was recorded twice in the Cash Book. When the balance as per Cash Book is the starting point. a) Rs.112 to be added b) Rs.112 to be subtracted c)


d) None of these For Private Circulation to registered students.

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FINPREP – Practice Problems Chapter Name Bank Reconciliation Statement Chapter No. 3 30. When balance as per Cash Book is the starting point which of the following is added: a) Uncollected cheque b) Un-presented Cheque c)

Direct payments by Bank

d) Interest charged by Bank 31. When balance as per Pass Book is the starting point which of the following is subtracted: a) Uncollected cheque b) Un-presented Cheque c)


d) Interest charged by Bank 32. When balance as per Cash Book is the starting point which of the following is subtracted: a) Uncollected cheque e) Un-presented Cheque f)


g) Interest charged by Bank 33. When balance as per Pass Book is the starting point which of the following is Added: a) Uncollected cheque b) Un-presented Cheque c)


d) Interest charged by Bank


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Answer 1. C

18. B

2. D

19. A

3. D

20. B

4. B

21. B

5. C

22. B

6. D

23. A

7. C

24. B

8. D

25. A

9. C

26. C

10. C

27. A

11. D

28. B

12. D

29. A

13. C

30. B

14. B

31. B

15. A

32. A

16. B

33. A

17. A


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Bank Reconciliation Statement-Practice Problems

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