Bank Reconciliation Statement
MULTIPLE CHOICE QUESTIONS
1. Bank Reconciliation Statement is :
(a) A part of Pass Book (b) A statement prepared by bank
(c) Cash book relating to cash column (d) A statement prepared by all business
2. Bank reconciliation statement is prepared to.
(a) Ascertain the cash book balance
(b) Ascertain the bank balance
(c) Ascertain the overdraft balance
(d) Reconcile balance as shown by cash book with that shown by the pass book
3. Unfavourable bank balance means :
(a) Credit balance in Cash Book b) Credit balance in Pass Book
(c) Debit balance in Cash Book d) Favourable balance in Cash Book
4. A Bank Reconciliation Statement is prepared to know the causes for the difference
between :
(a) The balance as per cash column of Cash Book and the Pass book
(b) The balance as per bank column of Cash Book and the Pass Book
(c) The balance as per bank column of Cash Book and balance as per cash column of Cash
Book
(d) None of the above
5. Bank reconciliation statement is prepared by :
(a) The Commercial Bank
(b) Businessman
(c) The Auditor
(d) None.
6. A bank reconciliation statement is a statement prepared to reconcile :
(a) Trial balance
(b) Profit as per books of account with the profit as per Income-tax returns
(c) Cash balance as per cash book with bank balance as per pass book
(d) Bank balance as per cash book with bank balance as per bank pass book
7. Debit balance in Bank Pass Book means :
(a) Bank Overdraft
(b) Bank Balance
(c) Balance as per Cash Book
(d) Total of Bank A/c
8. Credit balance in Bank Pass Book means :
(a) Bank Overdraft
(b) Bank Balance of Cash Book
(c) Cash Balance as per Cash Book
(d) Total of Bank A/c
9. Which of these statements is true about a Bank Pass Book?
(a) Pass book is a copy of customer’s account in bank books
(b) Pass book contain a copy of customers current account in cash book
(c) Pass book contains a copy of cash column of customer of cash book
(d) Pass book contains a copy of bank column of the customer’s cash book
10. Entry in debit side of Bank Pass Book implies :
(a) Cheque payments
(b) Cheque deposited dishonoured
(c) Cash withdrawn
(d) All of the above
11. A wrong entry on debit side of cash book would lead to :
(a) Cash book showing more balance (b) Cash book showing less balance
(c) Cash withdrawal
(d) Purchases
12. Cheque issued but not presented for payment are :
(a) Recorded in Cash Book (b) Recorded in Pass Book
(c) Recorded as debit note (d) Not recorded
13. Cheque sent for collection but not yet collected is :
(a) Recorded in Cash Book (b) Recorded in Pass Book
(c) Recorded as debit note (d) Not recorded
14. The balance of bank column shows :
(a) Bank balance as per Cash Book (b) Cash Balance
(c) Bank Balance as per Pass Book (d) None
15. Debit balance in the cash book means :
(a) Overdraft as per pass book (b) Overdraft as cash book
(c) Credit balance as per pass book (d) Neither of these
16. Difference in bank balance as per bank pass book and cash book may arise on account of :
(a) Cheque issued but not presented (b) Cheque issued but dishonoured
(c) Direct payments by customers in bank (d) All of the above
17. What will be the treatment if the starting point is a favourable pass book balance,
when cheque is deposited but not cleared :
(a) Add to the pass book balance (b) Subtract from the cash book balance
(c) Add to cash book balance (d) Subtract from the pass book balance
18. Which one of these will require adjustment of cash book balance?
(a) Overcasting of bank column of cash book
(b) Cheque issued but not presented for payment
(c) Cheque deposited but not cleared
(d) Errors in pass book
19. After preparing adjusted cash book the reconciliation statement should be prepared taking
the following item/items :
(a) Cheques deposited but not cleared (b) Cheques issued but not presented for payment
(c) Errors in the pass book
(d) All of the above
20. When the balance as per cash book is the starting point, direct deposits by customer are :
(a) Added
(b) Deducted
(c) Added twice
(d) None
21. When the balance as per pass book is the starting point, unpresented cheques are :
(a) Added
(b) Deducted
(c) Added twice
(d) None
22. When balance as per pass book is the starting point, interest allowed by bank is :
(a) Added
(b) Deducted
(c) Added twice
(d) None
23. Which of the following statements is true?
(a) Bank charges increase debit balance shown as per bank column of the cash book
(b) Bank charges increase debit balance as per bank pass book
(c) A credit sale is recorded in the cash book
(d) Bank reconciliation statement is prepared by a bank
24. Which of the following statements is false?
(a) When the bank column of a cash book shows a credit balance, it means an amount is
due to the bank
(b) When pass book shows a debit balance, it means overdraft as per passbook
(c) While preparing bank reconciliation statement, cheques paid into bank but not yet
cleared are deducted from the debit balance as per cash book to arrive at the balance
as per passbook
(d) A bank reconciliation statement is a part of passbook
25. Which of the following items is not a reason for difference between bank balance as per
cash book and pass book?
(a) Omission of a contra entry in cash book
(b) Cheques deposited but not yet cleared
(c) Omission of an entry in cash column of cash book
(d) Cheques issued but not yet presented
26. Under Bank reconciliation statement while adjusting the cash book.
(a) All the errors and omissions in the passbook are taken into consideration
(b) Delays in recording in the passbook due to difference in timing are taken into
consideration
(c) All the errors and omission in the cash book are taken into consideration
(d) All of the above
27. Which one of these is not a cause of difference in balance as per pass book and as per
cash book ?
(a) Errors in cash book
(b) Errors in pass book
(c) Cheques deposited and cleared
(d) Cheques issued but not presented for payment
28. Bank reconciliation statement is prepared with either balance of.
(a) Pass book
(b) Cashbook
(c) Both (a) or (b)
(d) None of the above
29. Which of these types of errors are not detected during Bank Reconciliation’ :
(a) Cash embezzlement by cashier
(b) Cheques deposited but not credited by bank
(c) Casting mistakes in bank column of cash book
(d) Interest or commission charged by the bank not accounted in cash book