Bank Reconciliation Statement (11 Accountancy)
Practise chapter-wise MCQs for Class 11 Accountancy — Bank Reconciliation Statement. Every question comes with the correct answer and an explanation.
TL;DR: Practise chapter-wise MCQs for Class 11 Accountancy — Bank Reconciliation Statement. Every question comes with the correct answer and an explanation.
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Practise chapter-wise MCQs for Class 11 Accountancy — Bank Reconciliation Statement. Every question comes with the correct answer and an explanation.
Bank Reconciliation Statement MCQs with Answers & Explanations
Q1. If the Pass Book shows a debit balance of ₹5,000 and the Cash Book shows a credit balance of ₹5,000, what is the most likely reason for this difference?
- Unrecorded bank charges
- Cheques deposited but not credited
- Cheques issued but not presented
- Bank overdraft ✓ (correct)
Explanation: A debit balance in the Pass Book indicates an overdraft (money owed to the bank). A credit balance in the Cash Book usually means money in hand, but in the context of a bank reconciliation, it could also represent an overdraft if that's how it's recorded.
Q2. Which of the following is NOT a common reason for the difference between the bank balance as per the Cash Book and the Pass Book?
- Interest credited by the bank ✓ (correct)
- Cheques issued but not yet presented for payment
- Bank charges debited by the bank
- Cheques deposited but not yet credited by the bank
Explanation: Interest credited by the bank increases the Pass Book balance and is a reason for difference. The other options are common reasons causing a difference.
Q3. If the Cash Book shows an overdraft of ₹2,000 and the Pass Book shows an overdraft of ₹1,800, and the difference is due to unrecorded bank charges of ₹200, starting from the Cash Book balance, what is the correct adjustment?
- Add ₹200 to the Cash Book overdraft
- Subtract ₹200 from the Cash Book overdraft ✓ (correct)
- Add ₹200 to the Pass Book overdraft
- Subtract ₹200 from the Pass Book overdraft
Explanation: Starting from the Cash Book overdraft of ₹2,000. Unrecorded bank charges mean the Pass Book is lower than it should be (more negative). To reconcile, we need to reduce the Cash Book overdraft (make it less negative) by ₹200: ₹2,000 - ₹200 = ₹1,800.
Q4. When preparing a BRS, if a cheque for ₹1,000 issued to a supplier has been recorded in the Cash Book but has not yet been presented to the bank for payment, and the Cash Book balance is ₹10,000 (favorable), what will be the adjusted Cash Book balance if we start from the Pass Book balance of ₹12,000 (favorable)?
- ₹13,000
- ₹9,000
- ₹11,000 ✓ (correct)
- ₹10,000
Explanation: Starting from Pass Book balance of ₹12,000. Cheques issued but not presented reduce the Cash Book balance. Therefore, subtract ₹1,000 from the Pass Book balance to arrive at the adjusted Cash Book balance: ₹12,000 - ₹1,000 = ₹11,000.
Q5. When the Cash Book balance is taken as the starting point for preparing a Bank Reconciliation Statement, which of the following adjustments is made by ADDING to the Cash Book balance?
- Dishonoured cheque not recorded in Cash Book
- Standing order paid by bank not recorded in Cash Book
- Cheques issued but not presented
- Direct deposit by a customer credited in Pass Book only ✓ (correct)
Explanation: A direct deposit by a customer increases the Pass Book balance but is not yet recorded in the Cash Book. To reconcile, we add this amount to the Cash Book balance.
Q6. When preparing a BRS, if a direct deposit by a customer of ₹700 is credited in the Pass Book but not recorded in the Cash Book, and the Cash Book balance is ₹5,000 (favorable), what will be the adjusted Cash Book balance if we start from the Pass Book balance of ₹4,300 (favorable)?
- ₹5,000 ✓ (correct)
- ₹4,300
- ₹3,600
- ₹5,700
Explanation: Starting from Pass Book balance of ₹4,300. A direct deposit by a customer increases the Pass Book balance. To reconcile, we add this ₹700 to the Pass Book balance: ₹4,300 + ₹700 = ₹5,000, which is the adjusted Cash Book balance.
Q7. A Bank Reconciliation Statement is prepared at the end of a specific period to:
- Correct errors in the Cash Book
- Ascertain the true bank balance and identify the causes of the difference ✓ (correct)
- Ascertain the true cash balance
- Identify the causes of difference between Pass Book and Cash Book balances
Explanation: The primary purpose of a BRS is to reconcile the balances and identify the reasons for any discrepancies between the company's records (Cash Book) and the bank's records (Pass Book).
Q8. Which of the following errors, if made in the Cash Book, would require an addition to the Cash Book balance when reconciling from the Cash Book balance to the Pass Book balance?
- Cheque of ₹200 deposited but recorded as ₹20
- Bank charges of ₹100 not recorded
- Interest received of ₹400 not recorded ✓ (correct)
- Cheque of ₹300 issued but recorded as ₹30
Explanation: Interest received of ₹400 would have increased the Pass Book balance. If it's not recorded in the Cash Book, we need to add it to the Cash Book balance to match the Pass Book.
Q9. A dishonoured cheque of ₹500 was returned by the bank. It was initially deposited and credited in the Cash Book, but the bank debited it in the Pass Book. When reconciling starting from the Pass Book balance, what adjustment is needed?
- Add ₹500 to the Cash Book balance
- Subtract ₹500 from the Cash Book balance
- Add ₹500 to the Pass Book balance
- Subtract ₹500 from the Pass Book balance ✓ (correct)
Explanation: A dishonoured cheque reduces the Pass Book balance. If the Cash Book has already accounted for the credit, we need to reduce the Pass Book balance by the same amount to reconcile.
Q10. A Bank Reconciliation Statement helps in identifying:
- Both errors made by the bank and the depositor ✓ (correct)
- The profitability of the bank
- Only errors made by the bank
- Only errors made by the depositor
Explanation: The BRS is designed to highlight discrepancies arising from timing differences, transactions not yet recorded by one party, and errors made by either the bank or the depositor.
More 11 Accountancy MCQs
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