Chapter Exam

Chapter 9 ACCOUNTANCY : Bank Reconciliation Statement — Online MCQ Test

Q: Who prepares the Bank Reconciliation Statement?

Answer: C. The Account Holder (Business entity) — It is an internal document prepared by the business entity to ensure their records match the bank's records.

Q: If the bank passbook shows an overdraft, a cheque deposited into the bank will:

Answer: B. Decrease the overdraft — Depositing a cheque reduces the amount of money the customer owes the bank, thereby decreasing the overdraft balance.

Q: When the Cash Book shows a favorable balance, but the Pass Book shows an overdraft, which of the following is most likely?

Answer: A. Total cheques issued exceed bank balance — An overdraft occurs when the amount withdrawn/issued exceeds the amount deposited, leading to a negative balance.

ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board

Practice Chapter 9 ACCOUNTANCY : Bank Reconciliation Statement with a free chapter-wise online MCQ test for Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY. This chapter covers: This chapter covers causes of differences between cash book and bank passbook balances and preparing bank reconciliation statements.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 9 ACCOUNTANCY : Bank Reconciliation Statement — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY — Chapter 9 ACCOUNTANCY : Bank Reconciliation Statement, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is a Bank Reconciliation Statement primarily prepared for?

A. To rectify errors in the Cash Book
B. To reconcile the differences between the Cash Book and Pass Book balances ✓
C. To ascertain the profit of the business
D. To record daily cash receipts

Answer: B. To reconcile the differences between the Cash Book and Pass Book balances
A BRS is prepared to identify and explain the differences between the bank balance as per cash book and the bank statement (passbook).

Who prepares the Bank Reconciliation Statement?

A. The Bank Manager
B. The Auditor
C. The Account Holder (Business entity) ✓
D. The Tax Authorities

Answer: C. The Account Holder (Business entity)
It is an internal document prepared by the business entity to ensure their records match the bank's records.

When cheques are issued but not yet presented for payment, what is the effect on the Cash Book balance?

A. Cash Book balance is higher than Pass Book balance
B. Cash Book balance is lower than Pass Book balance ✓
C. No change
D. Pass Book balance is lower than Cash Book balance

Answer: B. Cash Book balance is lower than Pass Book balance
When a cheque is issued, the business reduces its Cash Book balance immediately, but the bank balance remains higher until the cheque is presented.

If the bank passbook shows an overdraft, a cheque deposited into the bank will:

A. Increase the overdraft
B. Decrease the overdraft ✓
C. Have no effect
D. Change it to a credit balance

Answer: B. Decrease the overdraft
Depositing a cheque reduces the amount of money the customer owes the bank, thereby decreasing the overdraft balance.

When the Cash Book shows a favorable balance, but the Pass Book shows an overdraft, which of the following is most likely?

A. Total cheques issued exceed bank balance ✓
B. Total cheques deposited exceed bank receipts
C. There is a massive error in the bank passbook
D. The firm has no bank account

Answer: A. Total cheques issued exceed bank balance
An overdraft occurs when the amount withdrawn/issued exceeds the amount deposited, leading to a negative balance.

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Chapter 8 ACCOUNTANCY : Cash Book

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Chapter 10 ACCOUNTANCY : Trial Balance