Bank reconciliation statement questions and answers

MCQ on Bank reconciliation statement

The following questions are taken from previous year question papers.

[1] Credit balance as per Cash Book ~ 10,000 Bank charged interest ~ 150 Cheques issued but not presented for payment ~ 2,500 Balance as per Pass Book will be:

(a) ~ 7,650

(b) ~ 12,350

(c) ~ 12,650

(d) None of these

ANSWER-(a)

[2] When overdraft as per Cash book is the starting point, a cheque of ~ 500 deposited into bank but not recorded in cash book will be:

(a) Added by ~ 500

(b) Deducted by ~ 500

(c) Added by ~ 1,000

(d) Deducted by ~ 1,000

ANSWER-(b)

[3] 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

ANSWER-(b)

[4] If balance as per Pass Book is the starting point, then uncollected cheques are:

(a) Added in BAS

(b) Subtracted in BAS

(c) Ignored while preparing BAS

(d) None of these

ANSWER-(a)

[5] Balance as per pass book ~ 20,000 ~ 4,000 were directly deposited by a customer into the bank. Then the balance as per cash book is:

(a) ~ 24,000

(b) ~ 18,000

(c) ~ 16,000

(d) ~ 22,000

ANSWER-(c)

[6] The balance as per Cash Book is ~ 10,000 Cheques for ~ 2,000 were issued but not presented for payment. What would be the balance as per Pass Book?

(a) ~ 10,000

(b) ~ 2,000

(c) ~ 12,000

(d) None of the above

ANSWER-(c)

[7] The balance as per Cash Book . (overdraft) is ~ 1,500. Cheques for ~ 400 were deposited but were not collected. The cheques issued but not presented were ~ 1 00, ~ 125, ~ 50. Balance as per Pass Book is:

(a) ~ 1,100

 (b) ~ 1,625

(c) ~ 2,175

(d) .~ 1,375

ANSWER-(b)

[8] If the balance as per Pass Book is the starting point, so the treatment of undercasting of receipt side of Cash Book will be:

(a) Added

(b) Deducted

(c) No treatment

(d) None of these

ANSWER-(b)

[9] The payment side of Cash Book is undercast by ~ 250. If the starting point of BAS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book?

(a) Add 250

(b) Less 250

(c) Add 500

(d) Less 500

ANSWER-(b)

[10] Bank Overdraft as per cash book is ~ 10,500. Interest debited by bank ~ 3,500 for which advice was not received by account holder. Cheques deposited but not credited by bank ~ 7,500. Cheques issued but not yet presented ~ 9,500. What is the Overdraft amount as per Pass Book?

(a) ~ 12,000

(b) ~ 16,000

(c) ~ 5,000

(d) ~ 9,000

ANSWER-(a)

[11] On 31.3.09 the balance of the cash book is ~ 7,074 (credit) and Balance as per Bank statement is ~ 3,159 (debit). On scrutiny it was found that the difference was due to cheques issued but yet not presented for payment. The Bank Balance as on 31.3.09 to be shown in Balance Sheet as:

(a) As Bank Overdraft ~ 3,159

(b) As Cash at Bank ~ 7,074

(c) As Bank Overdraft ~ 7,074

(d) As Cash at Bank ~ 3,159

ANSWER-(c)

[12] Favourable balance as per Cash Book ~ 5,000. Debit side of Cash Book under cast by ~ 2,000. Cheque deposited into bank ~ 3000 dishonoured but no entry for dishonour is made in cash book. Balance as per Pass Book is:

(a) ~ 4,000

(b) ~ 10,000

(c) ~ 6,000

(d) None of the above.

ANSWER-(a)

[13] A trader issued cheques worth ~ 7,800 out of which cheques worth ~ 6,500 only presented into bank then on reconciling the Cash Book with the Pass Book, the’ amount to be added will be:

(a) ~ 1,300

(b) ~ 7,800

(c) ~ 6,500

(d) ~14,300

ANSWER-(a)

[14] Debit balance as per cash book of ABC Enterprises as on 31″t March, 2012 was ~ 1,500. Cheques deposited but not cleared amount to ~ 100. Cheques issued but not presented amounts to ~ 150. The bank allowed interest amounting to ~ 50 and collected dividend ~ 50 on behalf of ABC Enterprises. Balance as per Pass Book as on 31 st March 2012, should be:

(a) ~ 1,600

(b) ~ 1,450

(c) ~ 1,850

(d) ~ 1,650

ANSWER-(d)

[15] When over draft as per cash book is the starting paint, a cheque of ~ 5,500 was deposited in bank and duly credited by bank, but not recorded in cash book, ____ in bank reconciliation statement

(a) ~ 5,500 will be added

(b) ~ 5,500 will be deducted

(c) ~ 11,000 will be added

(d) ~ 11,000 will be deducted.

ANSWER-(b)

[16] On at= March, 2011, the bank statement of Mis Smile Traders showed a credit balance of ~ 10,585. However, during the year the following entries were not found in the cash book of the firm:

(1) The bank had debited ~ 35 per month as bank charges

(2) Quarterly interest was credited to the account amounts respectively ~ 25,42 39and 57 The balance of bank account as per the Cash Book of the firm as on 31″t March, 2011 was:

            (a) ~ 10,547

            (b) ~ 10,713

            (c) ~ 10,328

           (d) ~ 10,842

ANSWER-(d)

[17] Bank overdraft as per Cash Book on 31″t May, 2011 was ~ 8,720. Cheques deposited on 28th May but not credited until 31 st May amounted to ~ 690. These were credited on 4th June, 2011. Bank overdraft as per Pass Book is

(a) ~ 8,054

(b) ~ 8,030

(c) ~ 9,410

(d) ~ 9,366

ANSWER-(c)

 [18] Bank column of a cash book of a trader shows a credit balance of ~ 7,900, and the bank -statement shows a debit balance of ~ 10,300 on a particular date after payments made by the bank as per the standing orders. In the statement of affairs, the bank balance will be shown on:

(a) Assets side ~ 7,900

(b) Liabilities side ~ 10,300

(c) Liabilities side ~ 2,400

(d) Assets side ~ 10,300

ANSWER-(b)

[19] The bank charged ~ 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the Charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:

(a) Reduce ~ 1,000

(b) Add ~ 1,000

(c) Add ~ 2,000

(d) No treatment

ANSWER-(b)

[20] An amount of ~ 5,000 debited twice in pass book, to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the startinq point:

(a) ~ 5,000 will be deducted

(b) ~ 5,000 will be added

(c) ~ 10,000 will be deducted

(d) ~ 10,000 will be added

ANSWER-(b)

[21] The overdraft as per cash book of Mr. X is ~ 20,500. One of the customer of Mr. X residing in Mumbai directly remitted ~ 50,000 into Mr. X’s account, about which Mr. X was not aware. One of the cheques deposited into bank for ~ 25,000 was returned unpaid and the advice in this regard is yet to be received by Mr. X. The balance as per Pass book was:

(a) ~ 4,500 credit.

(b) ~ 4,500 overdraft

(c) ~ 45,500 credit

(d) None of the above.

ANSWER-(a)

[22] While preparing bank reconciliation statement with favourable balance as per cash book which of the following will not be added?

(a) Cheques deposited but not cleared

(b) Cheques issued but not presented to bank

(c) Cheques directly deposited in bank by a customer

(d) Overcasting of Cr. side of the bank account in cash book.

ANSWER-(a)

[23] ABC Co. has issued a cheque to its suppliers for an amount of ~ 10,000, but the accountant of the company by error has recorded the payment as ~ 1,000. This error can be primarily identified on preparing .

(a) profit and loss account

(b) trial balance

(c) bank book

(d) bank reconciliation statement

ANSWER-(d)

[24] The credit balance as per pass book of Mr. X was ~ 65,600.’ Cheques issued but not presented for payment ~ 75,800. Cheques deposited by one of the customers of the bank but wrongly credited in Mr. X account ~ 20,600. The balance as per cash book will be:-

(a) ~ 30,800 Debit

(b) ~ 30,800 overdraft

(c) ~ 1,20,800 Debit

(d) ~ 10,400 overdraft.

ANSWER-(b)

[25] On 31.3.13, the balance of the bank book is ~ 7,074 (Credit) and balance as per bank statement is ~ 3,159 (Debit). On scrutiny, it was found that the difference was due to cheques issued but yet not presented for payment. The bank balance as on 31.3.13 will be shown in the Balance Sheet as:

 (a) As Bank Overdraft ~ 3,159

(b) As Cash at Bank ~ 7,674

(c) As Bank Overdraft ~ 7,074

(d) As Cash at Bank ~ 3,159.

ANSWER-(c)

[26] For preparing Bank Reconciliation statement, the documents! statements required are:

(a) Cash column of cash book and bank statement

(b) Bank column of cash book and bank statement

(c) Bank and cash column of the cash book

(d) Bank statement

ANSWER-(b)

[27] The cash book showed an overdraft of ~ 2,000 as cash at bank but the pass book upto the . same date showed that cheques of ~ 1 00, ~ 150 and ~ 175 have not been presented for payments; and the cheque of ~ 600 deposited into account has not been cleared. The overdraft as per pass book will be:

(a) ~2,150

(b) ~ 2,175

(c) ~ 1,475

(d) ~ 1,925

ANSWER-(b)

[28] From the following particulars, ascertain the balance as per Cash Book as on 30th April 2014:

(a). Bank Overdraft as per Pass Book ~ 26,500

(b) Cheques recorded in Cash Book but not sent to bank for collection ~11 ,000

(c) Payments received from customers directly by bank ~ 4,700

(d) Bills of ~ 4,000 (discounted with the bank) dishonoured on 20th April and Noting charges paid by bank ~ 200

                          (a) ~ 28,600 Overdraft

                         (b) .~ 6,600 Overdraft

                         (c) ~ 16,000 Overdraft

                        (d) ~ 46,400 Overdraft

ANSWER-(c)

[29] Anuj presented four cheques – ~ 23,000, ~ 21 ,000, ~ 16,000 and ~ 14,000 with the bank on 27th March, 2014. Out of these cheques amounting ~ 16,000 cleared on 30th March, 2014. Cheques amounting to ~ 23,000 and ~ 14,000 were shown in the pass book in the month of April 2014. Cheque of ~ 21,000 was unsigned, so it was returned back. Which of these cheques would be taken in Bank Reconciliation Statement?

(a) ~ 23,000, ~ 21,000 and ~ 14,000

(b) ~ 23,000, ~ 21 ,000, ~ 16,000 and ~ 14,000 .

(c) ~ 23,000, and ~ 14,000

(d) ~21,OOO

ANSWER-(c)

[30] The cash book showed an overdraft of ~ 15,000, but the pass book made upto the same date showed that cheques of ~ 1,000, ~ 500 and ~ 1 ,250 respectively had not been presented for payment and the cheque of ~ 4,000 paid into account had not been cleared. The bank has been given standing instructions of payment of premium of ~ 1,500 directly to insurance company and bank has collected ~ 250 as dividend . The balance as per the pass book will be:

(a) ~ 17,500 Dr.

(b) ~ 16,250 Dr.

(c) ~ 18,000 Dr.

(d) f18,750 Dr.

ANSWER-(a)

[31] A Bank Reconciliation Statement is a part of:

(a) Bank Accounts

(b) Cash Book

(c) Part of accounting reports

(d) None of the above.

ANSWER-(d)

[32] The Cash Book showed a credit balance of ~ 9,000, but the pass book made up to the same date revealed that a cheque of ~ 2,000 had not been presented for payment and the cheque of ~ 3,000 paid into account had not’ been cleared. The balance as per the pass book will be:

(a) ~ 14,000

(b) ~. 8,000

(c) ~ 4,000

(d) ~ 10,000.

ANSWER-(d)

[33] Balance as per Cash Book on 31st December, 2014 ~ 8,560:

1. On . 18thDecember 2014 the debit balance of ~ 1,700 as on the previous day, was brought forward as credit balance.

2. One out going cheque of ~ 500 was recorded twice in the Cash Book.

3.· A cheque of ~ 250 issued on 25thDecember, 2014, was not recorded in the bank column.

4. Dividend of ~ 250 collected by the bank and ~ 100 subscription paid by the bank were not recorded is the Cash Book. Balance as per the Pass Book.

(a) ~ 12,360 Cr.

(b) ~ 10,660 Cr.

(c) ~ 12,610 Cr.

(d) ~ 7,260 Cr.

ANSWER-(a)

[34] Bank overdraft as per . Cash Book ~ 12,500 Cheque deposited but not credited ~ 2,000 Cheque issued but not presented ~ 5,000 Overdraft as per bank statement will be:

(a) ~ 15,500

(b) ~ 12,500

(c) ~ 9,500

(d) None of above. 

ANSWER-(c)

[35]When overdraft as per Cash Book is the starting point, then wrong debit in the pass book will be –

(a) Deducted in the Bank Reconciliation Statement.

(b) No effect in the Bank Reconciliation Statement.

(c) Added in the Bank Reconciliation Statement.

(d) None of the above.

ANSWER-(c)

[36] The Cash Book. of Mr. Mistake Singh shows ~ 7,000 as the balance at bank as on 31″t October 2015. When reconciled for the month, you find that it does not agree with the balance as per the Bank Pass Book. Find out the balance as per Pass Book after considering the following discrepancies:

1 . On 15thOctober 2015 the debit balance of ~ 2,000 as on the previous day, was brought forward as credit balance in Cash Book.

2. On 18thOctober 2015 the payment side of the Cash Book was under cast by ~1 ,000.

3. A cheque for ~ 500 issued on 25thOctober, 2015 was not taken in the bank column. (Cheque cleared from bank before 31″t October, 2015)

                          (a) ~ 7,500

                          (b) ~ 8,500

                          (c) ~ 9,500

                         (d) ~ 10,500

ANSWER-(c)

[37] A Bank Reconciliation Statement is a:

(a) Part of Financial Statements

(b) Part of Bank Account

(c) Part of Cash Book

(d) None of the above.

ANSWER-(d)

[38] The Cash Book showed an Overdraft of ~ 4,500 but the pass book made upto the same day showed that cheques of ~ 300, ~ 150 and ~ 375 respectively had not been presented to the bank for payment and the cheques of ~ 1,200 paid into account had not been cleared. The balance as per pass book will be:

(a) ~ 3,300 Dr.

 (b) ~ 6,525 Dr.

(c) ~ 4,875 Dr.

(d) ~ 4,125 Dr.

ANSWER-(c)

[39] Credit balance in the bank Pass Book represents__ (for the account holder).

(a) asset

(b) liability

(c) provision

(d) reserve

ANSWER-(a)

[40] 0.0. balance as per Pass-Book is ~ 2,175. It was found that cheque of ~ 1 00, ~ 150, ~ 175 which are issued but not presented till the date and a cheque of ~ 600 deposited in account but have not been cleared, then Cash Book 0.0. balance is:

(a) ~ 2,000

(b) ~ 2,150

(c) ~ 1,475

(d) n,925

ANSWER-(a)

[41] 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.

ANSWER-(b)

[42] Debit balance as per Cash Book of AXE Limited as on 31.03.2016 is ~ 2,000. Cheques deposited but not cleared amounts to ~ 100 and cheques issued but not presented of ~ 150. The bank allowed interest amounting ~ 100 and collected dividend ~ 50 on behalf of AXE Limited. Balance as per Pass Book should be:

(a) ~·1,700

(b) ~ 2,000

(c) ~2;100

(d) ~ 2,200

ANSWER-(d)

 [43] When debit balance as per Cash Book is the starting point, cheques deposited but not cleared are .

(a) Added in Bank Reconciliation Statement

(b) Substracted in Bank Reconciliation Statement

(c) Not required to be adjusted in the Bank Reconciliation Statement

(d) None of the above.

ANSWER-(b)

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