BANK RECONCILIATION STATEMENT

1.A Bank Reconciliation Statement is:

a) A part of cash book
b) A part of pass book
c) A statement prepared by bank
d) A statement prepared by a customer
2.A pass book is a copy of
a) A customer’s account in the bank’s books
b) Cash book relating to bank column
c) Cash book relating to cash column
d) Firm’s receipts and payments
3.A bank reconciliation statement is prepared with the balance of:
a) Cash book
b) Pass book
c) Either cash book or pass book
d) Neither cash book nor pass book
4.Unfavourable bank balances means:
a) Credit balance in the cash book
b) debit balance in the pass book
c) Debit balance in the cash book
d) Favourable balance in the cash book
5.The main purpose of preparing a bank reconciliation statement is?
a) To know the bank balance
b) To know the balance of bank statement
c) To correct the cash book
d) To identify causes of difference between cash book and bank statement
6.Uncollected checks are also known as?
a) Outstanding checks
b) Uncleared checks
c) Outstation checks
d) Both b & c
7.When check is not paid by the bank, it is called?
 a) Honoured
b) Endorsed
c) Dishonoured
d) a & b
8.Bank reconciliation is not a?
a) Reconcile records
b) Memorandum statement
c) Ledger account
d) Procedure to provide cash book adjustments
9.Bank statement also called?
a) Pass book
b) Cash book
c) Credit book
d) Debit book
10.The balance on the debit side of the bank column of cash book indicates?
a) The total amount has drawn from the bank
b) Cash at bank
c) The total amount overdraft in the bank
d) None of above
11.The main function of a commercial bank is to?

a) Barrow and lend money

b) Only barrow money

c) Only lend money

d) None of theses

12.When a cheque is returned by the bank showing some technical reason is known as?

a) Honour of the cheque

b) Balance of account
c) Dishonour of the cheque
d) None of these

13.The outstanding check is the missing entry of?

a) Cash book
 b) Passbook
c) both
d) None

14.Directly collections of bank are to be ___________ in cash book?

a) Dr
b) Cr
c) both
d) None

15.The cheque which is issued to creditor but is not presented for payment is called?

a) Uncredited cheque
b) Outstanding cheque
c) Omitted cheque
d) Dishonoured cheque

16.Farkhanda Jabeen Ltd. receives a check for Rs. 100 records it in cash book and deposits it on
the same day. A statement sent by the bank that day does not show this Rs. 100. How is this
shown on the bank reconciliation statement?

a) As an uncredited deposits added to the bank statement balance

b) As an uncredited deposits deducted from the bank statement balance
c) As an Unpresented check added to the bank statement balance
d) As an Unpresented check deducted from the bank statement balance

17.A bank reconciliation statement is prepared by?

a) Internal auditor
b) Business accountant
c) Businessman
d) All of before

18.Which of the following items is not a reason for difference between bank balance as per cash
book and pass book?

a) Dishonoured check
b) Cheques deposited but not yet cleared
c) Credit sales
d) Cheques issued but not yet presented for payment

19.Credit balance in bank pass book means?

 a) Bank overdraft
b) Bank balance
c) Balance as per cash book
d) None

20.A check that bears a date latter than date of issue is called?

a) Anti dated check

b) Post-dated check
c) Dishonoured check
d) Outdated check

21.An institutions deal in money’s buying and selling is called?

a) Industry
b) Trading
c) Bank
d) Manufacturing

22.The debit side of cash book =____________ side of passbook?

a) DR
b) CR
c) Both a & b
d) None of these

23.Modern Banks provide depositors printed forms to use for details of items being deposited is?

a) Pay in slip
b) Deposit Ticket
c) Both a & b
d) Signature Card

24.A dishonoured check involves?

a) Insufficient fund in customer account

b) When cross check is presented on counter
c) If payment is stopped by drawer
d) All of above

25.In case of bank statement if balance is overdraft?

a) Debit & unfavorable

 b) Credit & favorable
c) Credit & unfavorable
d) Debit & favorable

26.A check may be crossed by drawing _________________ on the face of its?

a) One line
b) Two parallel lines
c) Three parallel line
d) none

27.Bank lends money to the customer by following ways?

a) Overdrafts
b) Loan
c) Both a & b
d) None

28.If bank statement shows a credit balance, it means __________balance for bank book?

a) Favorable
b) Unfavorable
c) Overdraft
d) None of the given options

29.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 customer’s current account in cash book
c) Pass book contains a copy of cash column of customer cash book
d) Pass book contains a copy of bank column of the customer’s cash book

30.Which one of these will require adjustment of cash book balance?

a) Overcasting bank column of cash book

b) Cheque issued but not presented for payment
c) Cheque deposited but not cleared
d) Errors in pass book

31.Credit balance as per Cash Book - Rs. 10,000

Bank charged interest - Rs. 150

Cheques issued but not presented for payment - Rs. 2,500

 Overdraft / Balance as per Pass Book will be:

a) Rs. 7,650
b) Rs. 12,350
c) Rs. 12,650
d) None of these

32.When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank
but not recorded in Cash Book will be :

a) Added by Rs. 500

b) Deducted by Rs. 500
c) Added by Rs. 1,000
d) Deducted by Rs. 1,000

33.Overdraft as per Cash Book means:

a) Credit balance in the Cash Book

b) Credit balances in the bank column of the Cash Book
c) Decrease in Liability
d) None of the above

34.Debit balance as per Cash Book of ABC Enterprises as on 31.3.2006 is Rs.1,500. Cheques
deposited but not cleared amounts to Rs.1000 and cheques issued but not presented of Rs.1500.
The bank allowed interest amounting to Rs.50 and collected dividend Rs.500 on behalf of ABC
Enterprises. Balance as per pass book should be

a) 2,550
b) 450
c) 1,850
d) 1,650

35.Bank Balance as per Cash Book is Rs.12,000 taking into account cheques worth Rs20,000
deposited in bank. Of the cheques deposited one cheque of Rs. 5,000 was yet to be cleared and
another cheque for Rs, 4,000 was returned unpaid. The balance as per Pass Book is -

a) Rs.3500
b) Rs.3,000
c) Rs.5,000
d) Rs.4,000

36.Cheques received but deposited on the next day are recorded in:
 a) Cash column of the cash book
b) Bank column of the cash book
c) Both of these
d) None of these

37.Balance shown by Cash Book Rs. 10,000

Cheques issued but not presented for payment Rs. 4,000

Cheques deposited but not yet collected Rs. 3,000

Balance as per Pass Book will be;

a) Rs. 9,000
b) Rs. 10,000
c) Rs. 11,000
d) None

38.Favourable balance as per Cash Book means:

a) Debit balance in the bank column of the cash book

b) Debit balance in the pass book
c) Credit balance in the bank column of the cash book
d) None of these

39.In arriving at adjusted cash balance which of the following is not taken into account:

a) Amount deposited by our customer directly in our account

b) Errors in the Cash Book
c) Errors in the Pass Book
d) All of these

40.Beta Ltd. received its bank statement showing a favorable balance of Rs.5,525 for the period
ended June 30 this did not agree with the balance in the cash book. An examination of the cash
book and bank statement disclosed the following :

(i) A standing order for payment of annual subscription amounting to Rs.10 had not been entered
in the cash book

(ii) On June 25th the managing director had given the cashier a cheque for Rs.100 to pay into his
personal account at the bank. The cashier had paid it into the company's account by mistake.

(iii) Cheques amount to Rs.4,672 had not been presented to the bank for payment until after June
30
The balance as per cash book on June 30 x 1 is

a) Rs.963 (favorable)
b) Rs.763 (favorable)
c) Rs.743 (favorable)
d) Rs.10,307 (favorable)

41.What is the treatment if the starting point is a favourable Cash Book balance, when Bank
Charges are levied?

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

42.The following information is available from the books of Hari

(a) Balance as per Pass Book on 30th November overdrawn Rs.10,000

(b) Interest on Investment collected by Bankers on 30th Nov. Rs.955, entered in Cash Book on 4th
Dec. on receipt of bank intimation .

(c) Cheque deposited for collection on 30th Nov. but returned dishonoured on 6th Dec. of Rs.945

(d) Bankers have made mistake in balancing by showing overdrawn balance in excess by
Rs.1,000 on 30th Nov., which was rectified in the Bank Pass Book on 7th Dec when notified.

In the above case, the balance in the Cash Book on 30th Nov is

a) Rs.11,080 (Debit)
b) Rs.11,080 (Credit)
c) Rs.9,100 (Debit)
d) Rs.9,010 (Credit)

43.What is Pass Book?

a) Statement of transaction in the Customers' Book

b) Statement of transaction in the Bank Book
c) Reconciled Statement of Transaction in the Customer's Book
d) Reconciled Statement of Transaction in the Bank Book

44.What is the treatment if the starting point is an credit Cash Book balance, when cheque directly
deposited in Bank?

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

45.What is the treatment if the starting point is a unfavourable Cash Book balance, when there is
under casting of Cr. Side of the Bank Account in the Cash Book ?

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

46.What is the treatment if the starting point is a unfavourable Pass Book balance, when there is
over casting of Dr. side of Bank Account in the Cash Book ?

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

47.Which of the following cases would not lead a difference in the Cash & Bank Book?

a) Cheque issued but not presented

b) Cheque deposited not cleared
c) Dishonour of bills discounted
d) Discounting charges on Bills of Exchange