Bank Reconciliation Statement Test

BANK RECONCILIATION STATEMENT 35 MARKS
MCQ’S 5
Q1. Debit Balance as per Cash book shows:
a) Bank withdrawals are more than deposits.
b) Bank withdrawals are less than deposits
c) Bank deposits are less than withdrawals.
d) All of the above
2. Which of the following is not a part of Double Entry System?

(a) Cash-book
(b) Journal
(c) Trial balance
(d) Bank reconciliation statement
3. A business receives its bank statement showing the closing balance as Rs.8,500
overdrawn. It is found that there were unpresented cheques of Rs. 2000 and uncredited
deposits of Rs.1,500. Overdraft as per cash book is
(a)Rs.5,000
(b)Rs.8000
(c)Rs.9000
(d)Rs.12,000
4. Which of the following transaction 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 each book.
(d) Cheques paid into bank for collection but not yet credited.
5. If balance in bank statement shows Rs.3,000 (Dr) and there are deposits of Rs.800 not
yet credited and unpresented cheque totaling Rs.500, the balance in cash book should be
(a)Rs.3,300 (cr)
(b)Rs. 2,700 (cr)
(c)Rs.4,300 (cr)
(d)Rs.1,700 (cr)
ASSERTION REASON BASED: 5

a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct
explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are correct and Reason (R) is correct explanation
of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not correct.
d) Assertion (A) is not correct but the Reason (R) is correct.
6. Assertion (A): The difference in the balances as per Cash Book and Pass Book may arise
due to time gap in recording transactions.
Reason (R): The factors causing time gap include cheques issued but not yet presented for
payment in the Bank.
7. Assertion (A): Favourable bank balance as per the Cash Book will be less than the Bank
Pass Book balance when there are unpresented cheques for payment in the bank.
Reason (R): When payments are made by the bank as per the standing instructions of the
customer, the balance in the passbook will be more when compared to the Cash Book.
8. Assertion (A): Cheques issued but not yet presented for payment will reduce the balance
as per the Pass Book.
Reason (R): Cheques deposited into bank but not yet collected will result in increasing the
balance of the Cash Book when compared to Pass Book.
9.Assertion (A): Overdraft balance as per Pass Book means negative balance as per Pass
Book.
Reason (R): An overdraft balance is treated as negative figure in a Bank Reconciliation
Statement.
10.Assertion (A): Bank Reconciliation Statement is prepared to reconcile bank balance as

per Cash Book with the balance as per Bank Pass Book (or Statement), by showing all
causes of differences between the two.
Reason (R): Bank Reconciliation Statement is prepared to detect the errors committed by
bank.
11. Prepare a Bank Reconciliation Statement from the following particulars on 31st
March,2024 8
1. Debit balance as per bank column of the cash book 3,72,000
2. Cheques issued to creditors but not yet presented for payment 72,000
3. Dividend received by bank but not entered in cash book 5,000
4. Interest allowed by bank 1,250
5. Cheques deposited into bank for collection but not collected by bank up to this
date 15,400
6. Bank charges 200
7. A cheque deposited into bank was dishonoured but no intimation was received 320
8. Bank paid house tax on our behalf but no information received from bank in
this connection 350
12. On 30th June 2014, the Cash Book of a trader shows a credit balance of Rs. 2,500.
Following information’s are available: 6
1. Cheques amounting to Rs. 14,600 had been paid to the bank, but of these only Rs.12,200
were credited in the Pass Book, up to 30th June, 2014.
2. He had also issued cheques amounting to Rs.10,000, out of which only Rs. 3,600 had
been presented for payment.
3. A cheque of Rs. 500 which he had debited to the bank account was not sent to bank for
collection by mistake.
4. There is a debit in the Pass Book of Rs. 10 for Bank Charges and Rs. 50 for interest.
5. A customer directly paid into his bank Rs. 1,000, but it was not shown in the Cash Book.
6. Bank has paid insurance premium of Rs. 400 according to his instructions, but this is not
recorded in the Cash Book.
Prepare a Bank Reconciliation Statement.
13. Prepare the Bank Reconciliation Statement from the following particulars for the period
ending 31st December, 2023. 6
(a) Debit Balance as per Pass Book on 31-12-2023 Rs. 7,600.
(b) Cheques deposited but not collected by the bank Rs. 8,560.
(c) Incidental charges not recorded in Cash Book Rs. 80.
(d) Cheques were issued for Rs. 7,800 but only Rs. 4,400 were presented for payment.
e) Insurance premium paid by bank not recorded in the Cash Book Rs. 4,200.
(f) On 31st December, 2023 cash was deposited in bank Rs. 385 but in the cash book bank
column was debited with Rs. 485 by mistake.
14. On 30th June 2014 Pass Book showed a balance of Rs. 5,200. Prepare Bank
Reconciliation Statement from the following particulars: 5
I. Out of total cheques amounting to Rs.16,000 deposited, cheques amounting to Rs. 9,000
were credited in June 2014, Cheques amounting to Rs.3,000 were credited in July 2014, and
the rest have not been collected so far.
II. Out of total cheques amounting to Rs. 45,000 drawn, cheques amounting to Rs. 7,500
were presented in June 2014, Cheques amounting to Rs.18,000 were presented in July
2014, and the rest have not been presented so far.
III. Amount wrongly credited by bank Rs. 3,400.
IV. Payment side of the Cash Book has been undercast by Rs. 200.
V. Cheques recorded in the Cash Book in June 2014 but sent to bank in July 2014 Rs.2,500.
VI. A cheque of Rs. 20,000 deposited in the bank has been dishonoured but no intimation
was received till June 2014.

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BANK RECONCILIATION STATEMENT 35 MARKS

2. Which of the following is not a part of Double Entry System?

4. Which of the following transaction will result in higher balance in the

ASSERTION REASON BASED: 5

10.Assertion (A): Bank Reconciliation Statement is prepared to reconcile bank balance as

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