1. A bank reconciliation statement is prepared by:
(a) Bank (b) Government
(c) Auditor (d) Businessmen
2. The credit balance of bank account in pass book is:
(a)An asset (b) A liability
(c) An expense (d) None of the above
Ans: (a) An asset
3. Credit balance of pass book means
(a)Excess of credit side over debit side of bank pass book.
(b)Excess of debit side over credit side of bank pass book.
(c)Both (a) and (b)
(d)Either (a) or (b)
Ans: (a) Excess of credit side over debit side of bank pass book.
4. Which of the following transactions will result in higher balance in the bank column of Cash book in comparison to Pass Book?
(a)Cheques issued but not presented for payment
(b)Interest allowed by bank
(c)Bank charges entered twice in cash book
(d)Cheques paid into bank for collection but not yet credited
Ans: (d) Cheques paid into bank for collection but not yet credited
5. Find out the Bank Balance as per cash book from the following particulars:
(i) Overdraft as per Pass Book = ₹ 5,000.
(ii) Cheques deposited into the bank but not credited = ₹ 2,000.
(a) Favourable Balance (b) Overdraft = ₹ 3,000
(c) Overdraft = ₹ 3,500 (d) Overdraft = ₹ 2,500 Which of the
Ans: (b) Overdraft = ₹ 3,000
6. A opened an account with ₹ 5,000 on 3” December, 2018. He deposited ₹ 1,000 on 7th December, 2018 and withdrew ₹ 2,000 on 15th December, 2018. He deposited ₹ 10,000 on 20th December, 2018. What will be the balance on 31st December, 2018 in his bank account?
(a) ₹ 18,000 (b) ₹ 14,000
(c) ₹ 4,000 (d) ₹ 13,000
Ans: (b) ₹ 14,000
7. The credit balance as per Cash Book is ₹ 1500. Cheques for ₹ 400 were deposited but were not collected. The cheques issued but not presented were
₹ 100, ₹ 125, and ₹ 50. Balance as per Pass Book will be:
(a) ₹ 1,100 Debit (b) ₹ 1,625 Debit
(c) ₹ 2,175 Credit (d) ₹ 1,625 Credit
Ans: (b) ) ₹ 1,625 Debit
8. While preparing ‘Bank Reconciliation Statement’ with balance as per cash book, which of the following will not be added?
(a) Cheque deposited but not cleared
(b) Cheque issued but not presented
(c) Cheque directly deposited in bank by a customer
(d) Dividend received by bank
Ans: (a) Cheque deposited but not cleared
9. Overdraft balance as per Cash Book of ‘Sunil’ was ₹ 20,500. Direct deposit into bank by his customer is ₹ 50,000 and ‘Sunil’ was not aware that a cheque of ₹ 25,000 was deposited had returned unpaid and he was yet to be informed. Balance as per Pass Book is ............
(a) ₹ 4,500 Cr. (b) ₹ 4,500 Dr.
(c) ₹ 45,500 Cr. (d) ₹ 75,000 Cr.
Ans: (a) ₹ 4,500 Cr.
10. Bank Reconciliation statement can be prepared
(a)Only at the end of year (b) Only after 2 years
(c) At regular intervals (d) Anytime
Ans: (c) At regular intervals
11. Find out the balance as per Cash book after preparing Bank Reconciliation Statement from the following information.
(i) Overdraft as per pass book ₹ 5,000
(ii) Cash book balance ₹ 1,200 (Dr.) when transferred to next page written as ₹ 1,200 (Cr.)
(a) Overdraft ₹ 7,400 (b) Overdraft ₹ 6,200
(c) Overdraft ₹ 4,800 (d) Favourable ₹ 4,800
Ans: (a) Overdraft ₹ 7,400
12. Read the following points:
(i) Preparation of Bank Reconciliation Statement
(ii) Ascertain the causes of difference between Cash Book and Pass Book Balances.
(iii) Preparation of Cash Book and updating of Pass Book.
(iv) Preparation of Amended Cash Book. What is the correct order of the above points?
(a) (ii), (iii), (i), (iv) (b) (iii), (ii), (i), (iv)
(c) (iii), (ii), (iv), (i) (d) (ii), (iv), (iii), (i)
Ans: (c) (iii), (ii), (iv), (i)
13. While preparing Bank Reconciliation Statement if Debit Balance of Bank statement is given as ₹ 10,000 and there were unpresented cheques (issued) of ₹ 6,000. What will be the balance as per Cash Book?
(a) Credit ₹ 4,000 (b) Debit ₹ 16,000
(c) Credit ₹ 16,000 (d) Debit ₹ 4,000
Ans: (c) Credit ₹ 16,000
14. Creditor of ₹ 50,000 were paid at a discount of 4% through cheque, but full amount was credited in Cash column of cash book. How it will be shown in Bank Reconciliation Statement if Credit Balance of Pass Book is given to start with?
(a) Subtract ₹ 50,000 (b) Add ₹ 50,000
(c) Subtract ₹ 2,000 (d) Add ₹ 48,000
Ans: (c) Subtract ₹ 2,000
15. Cheque received from customer for ₹ 1,000 and deposited in the bank was not credited in pass book. In the Bank Reconciliation Statement starting with Cash book balance. This item will be
(a)Added in Cash Book Balance
(b)Deducted from Cash Book Balance
(c)To be ignored
(d)Deducted twice from Cash Book Balance
Ans: (b) Deducted from Cash Book Balance
16. The cash book of a trader is showing a favorable balance of ₹ 15,400. On investigation, it was found that two cheques of ₹ 4,000 and ₹ 250 respectively were debited in Cash book but were omitted to be deposited into bank, by the clerk.
The pass book must be showing a balance of
(a) ₹ 11,150 (b) ₹ 19,650
(c) ₹ 15,400 (d) ₹ 11,400
Ans: (a) ₹ 11,150