Chapter 9 ACCOUNTANCY : Bank Reconciliation Statement — Online MCQ Test
COMMERCE · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 9 ACCOUNTANCY : Bank Reconciliation Statement with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers reasons for cash book and bank passbook discrepancies and step-by-step preparation of bank reconciliation statements..
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Chapter 9 ACCOUNTANCY : Bank Reconciliation Statement — Important Questions & Answers
What is the main purpose of preparing a Bank Reconciliation Statement?
- A. To find gross profit of the business
- B. To reconcile the difference between cash book and passbook balances
- C. To calculate depreciation
- D. To prepare final accounts
Answer: B. To reconcile the difference between cash book and passbook balances
A Bank Reconciliation Statement is prepared to explain and reconcile the difference between the cash book bank balance and the bank passbook balance.
A Bank Reconciliation Statement is prepared to explain and reconcile the difference between the cash book bank balance and the bank passbook balance.
Which of the following is recorded in the cash book immediately but may appear later in the passbook?
- A. Cheque deposited into bank
- B. Interest allowed by bank
- C. Cash sales
- D. Purchase of machinery
Answer: A. Cheque deposited into bank
A cheque deposited into the bank is entered in the cash book on the day of deposit, but the bank may credit it later after collection.
A cheque deposited into the bank is entered in the cash book on the day of deposit, but the bank may credit it later after collection.
When preparing a Bank Reconciliation Statement starting with the cash book balance, which item is usually added if the cheque issued has not yet been presented?
- A. Cheques issued but not presented for payment
- B. Bank charges
- C. Interest on overdraft
- D. Direct deposit by customer
Answer: A. Cheques issued but not presented for payment
Cheques issued but not presented reduce the cash book balance but not the passbook balance yet, so they are added during reconciliation from cash book to passbook.
Cheques issued but not presented reduce the cash book balance but not the passbook balance yet, so they are added during reconciliation from cash book to passbook.
Which of the following is the correct treatment of interest credited by bank but not recorded in the cash book?
- A. Subtract from cash book balance
- B. Add to cash book balance when reconciling from cash book to passbook
- C. Ignore it completely
- D. Add to cash payments side
Answer: B. Add to cash book balance when reconciling from cash book to passbook
Interest credited by the bank increases the bank balance in the passbook, so it is added while reconciling from cash book balance to passbook balance.
Interest credited by the bank increases the bank balance in the passbook, so it is added while reconciling from cash book balance to passbook balance.
Which item is most likely to create a difference because it is entered in the cash book but not in the passbook until collection is completed?
- A. Cash deposited directly by owner
- B. Cheque deposited into bank
- C. Bank charges
- D. Interest on overdraft
Answer: B. Cheque deposited into bank
Cheques deposited into the bank are first recorded in the cash book, but the passbook reflects them only after the bank collects the amount.
Cheques deposited into the bank are first recorded in the cash book, but the passbook reflects them only after the bank collects the amount.