RBSE Class 11 Accountancy Important Questions Chapter 5 Bank Reconciliation Statement

Rajasthan Board RBSE Class 11 Accountancy Important Questions Chapter 5 Bank Reconciliation Statement Important Questions and Answers. 

RBSE Class 11 Accountancy Important Questions Chapter 5 Bank Reconciliation Statement

Very Short Answer Type Questions

Question 1.
What is Bank Reconciliation Statement?
Answer: 
It is a statement which is prepared to reconcile the balance of cash book (bank column) with the balance of pass book at the end of every month.

Question 2. 
State any two types of errors committed by bank which may cause difference between the balance of cash book with passbook.
Answer: 
The errors which bank may commit: 
(a) Incorrect posting of amount of the Cheques issued by the business
(b) Omission of some entries

Question 3. 
What does debit balance as per pass book mean?
Answer: 
It means the positive balance which is lying with the bank.

Question 4. 
While preparing bank reconciliation statement, how would you deal with the bank changes which are recorded in the cash book?
Answer: 
We would deduct such amount from the cash book balance or add in the pass book balance.

Question 5. 
State two types of errors which may be committed by the business firm which cause difference between the balances of cash book and pass book.
Answer: 
The errors which the business firm may commit:
(a) Cheques sent to bank for collection but not deposited.
(b) Cheques issued to the creditors but not entered in the cash book.

Question 6. 
What does overdraft mean in case of pass book balance?
Answer: 
It means there is credit balance in the pass book and it is payable by the business firm to the bank. 

Question 7.
If you prepared bank reconciliation statement, how will you deal with the Cheques deposited but not collected by the bank?
Answer: 
It will be added in the pass book balance or deducted from the cash book balance. 

Question 8. 
Mention the party which prepares bank reconciliation statement.
Answer: 
It is prepared by the business firms.

Short Answer Type Questions

Question 1.
What is the need to prepare bank reconciliation statement? State three reasons.
Answer: 
Need to prepare bank reconciliation statement:

1. Division of Accounting Work: Since there will about eight subsidiary books in place of a single journal, the work can be easily divided among many persons who can be accounting work simultaneously.

2. Increase in Efficiency: Division of work will lead to specialisation which will intum lead to increase in efficiency.

3. Prompt and Accurate Information: Separate register are maintained for different types of transactions. As such information in respect of them can be easily and readily collected whenever required.

Question 2. 
Explain favourable bank balance and adverse bank balance.
Answer: 
Favourable Bank Balance: It is the credit balance as per pass book which means bank owes such balance to the business firm.
Adverse Bank Balance: It is the debit balance as per pass book which means business firm owes such balance to the bank.

Question 3.
State four such causes which affect the balance of cash book and pass book from the point of view of business firm. 
Answer: 
Causes Which Create Difference:
(a) Cheques issued but not deposited by the creditors
(b) Cheques entered in the cash book but omitted to deposit in the bank
(c) Cheque issued, duly paid by the bank but omitted to be recorded in the cash book Direct payment by the debtor in our bank but omitted to be recorded by the firm 

Higher Order Thinking Skills Questions

Question 1.
What Adjusted Cash Book?
Answer: 
In the adjusted cash book, we adjust all such adjustments which appear in the pass book but not in the cash book before preparing bank reconciliation statement.

Question 2. 
Bank reconciliation statement should be prepared at the end of an accounting year and not at the end of the month. Do you agree with this statement? State with reason.
Answer: 
No bank reconciliation statement can be prepared at any point of time whenever it is needed to compare the balance of cash book with the balance of pass book. It is generally preferred to prepare at the end of each month.

Question 3. 
Mr Ram prepared Bank Reconciliation Statement with ₹ 40,000 debit balance of bank column of Cash Book. On comparing Cash Book with Pass Book, it was found that bank had credited interest of ₹ 2,000. What will be balance as per Passbook and why?    
Answer:
Balance as per Pass Book will be ₹ 42,000 because this transaction has plus effect on Passbook. 

I. Multiple Choice Questions

Question 1. 
Bank Reconciliation statement is prepared by the .............
(a) bank 
(b) creditor of a business 
(c) customer of a bank 
(d) customer of the proprietor
Answer: 
(c) customer of a bank 

Question 2. 
Bank reconciliation statement is a .............
(a) Statement of all accounts of a business in a bank
(b) Statement of all accounts of proprietor in a bank
(c) Statement of all bank transactions in cash book
(d) Statement to reconcile bank column of cashbook with passbook.
Answer: 
(d) Statement to reconcile bank column of cashbook with passbook.

Question 3. 
Bank reconciliation statement is prepared at the end of ..............
(a) Each month 
(b) Each year 
(c) Each week 
(d) Each fortnight
Answer: 
(a) Each month 

Question 4. 
Debit balance in the Cash Book means ..............
(a) overdraft as per Pass Book 
(b) credit balance as per Pass Book
(c) overdraft as per Cash Book 
(d) credit balance as per Cash Book
Answer: 
(b) credit balance as per Pass Book

Question 5. 
Unfavorable balance means ..............
1. Debit balance of cash book
2. Credit balance of pass book
3. Debit balance of pass book
4. Credit balance of cash book
The correct option would be
(a) 1 only 
(b) 2 only 
(c) 1 & 2 only 
(d) 3 & 4 only
Answer: 
(d) 3 & 4 only

Question 6. 
A bank passbook is a copy of ..............
(a) the cash column of a customer’s cash book. 
(b) the bank column of a customer’s cash book.
(c) the customer’s account in the bank’s ledger. 
(d) none of the above
Answer: 
(b) the bank column of a customer’s cash book.

II. State Weather the following Statement are true or false

1. Bank reconciliation statement is prepared at the end of every year.
2. Dr balance of cash book represents overdraft.
3. In the adjusted cash bank, only banking transactions are considered.
4. Bank charges appearing in both set of books, will have no effect on BRS.
5. Bank reconciliation statement is prepared by a bank and send to the trader.
6. Bank reconciliation statement is summary of transactions which appear in one set of book.
7. 1f bank reconciliation statement starts with cash book balance, it will end with pass book balance.
8. Bank reconciliation statement helps identify the frauds of cash.
Answers: 
1. False 
2. True 
3. True 
4. True 
5. False
6. True 
7. True 
8. True

III. Fill in the blanks with correct answer

1. Credit balance of cashbook means ___ 
2. Credit balance of cash book is ___ to debit balance of pass book under normal circumstance.
3. Bank statement is prepared and sent by to the ___ 
4. Overdraft as per passbook balance as per cashbook.
5. Bank reconciliation statement is prepared with the of differences in the cash book and pass book.
6. Cheques issued and presented to the bank by the end of the concerned month will ____ the bank reconciliation statement.
7. Direct deposit by customer will ____ the balance of____ book.
8. Bank charges duly recorded in cash book will have impact in the BRS.
Answers: 
1. Overdraft 
2. Equal 
3. Bank/customer 
4. Debit
5. causes 
6. Not affect 
7. Increase/pass 
8. No