Chapter Exam

Unit 8: CashBook and Bank Reconciliation Statement — Online MCQ Test

Q: What is the main purpose of maintaining a Cash Book?

Answer: B. To record all cash and bank transactions — A Cash Book is used to record all cash and bank transactions in chronological order. It serves both as a book of original entry and a ledger.

Q: Which of the following is a feature of a single-column Cash Book?

Answer: A. It records only cash transactions — A single-column Cash Book has only one amount column on each side and records cash transactions only.

Q: Which of the following is NOT a reason for differences between Cash Book and Pass Book balances?

Answer: D. Purchase of furniture on credit — Credit purchase of furniture does not affect bank balance and therefore does not cause a difference between Cash Book and Pass Book.

COMMERCE & ACCOUNTANCY · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board

Practice Unit 8: CashBook and Bank Reconciliation Statement with a free chapter-wise online MCQ test for Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR COMMERCE & ACCOUNTANCY. This chapter covers: This chapter details single-column double-column triple-column petty cash books passbook cashbook differences and Bank Reconciliation Statement BRS preparation procedures.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Unit 8: CashBook and Bank Reconciliation Statement — Important Questions & Answers (FAQ)

Frequently asked questions from Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR COMMERCE & ACCOUNTANCY — Unit 8: CashBook and Bank Reconciliation Statement, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the main purpose of maintaining a Cash Book?

A. To record only credit sales
B. To record all cash and bank transactions ✓
C. To prepare final accounts directly
D. To calculate depreciation

Answer: B. To record all cash and bank transactions
A Cash Book is used to record all cash and bank transactions in chronological order. It serves both as a book of original entry and a ledger.

Which of the following is a feature of a single-column Cash Book?

A. It records only cash transactions ✓
B. It records cash and bank transactions separately
C. It records three types of columns on both sides
D. It is used only for petty expenses

Answer: A. It records only cash transactions
A single-column Cash Book has only one amount column on each side and records cash transactions only.

Which of the following is NOT a reason for differences between Cash Book and Pass Book balances?

A. Cheques issued but not yet presented
B. Cheques deposited but not yet collected
C. Bank charges recorded by the bank
D. Purchase of furniture on credit ✓

Answer: D. Purchase of furniture on credit
Credit purchase of furniture does not affect bank balance and therefore does not cause a difference between Cash Book and Pass Book.

The balance as per Pass Book is higher than the balance as per Cash Book. Which of the following may be a possible reason?

A. Cheques issued but not yet presented
B. Bank charges not recorded in Cash Book
C. Interest credited by bank not entered in Cash Book ✓
D. Cash sales recorded in the Cash Book

Answer: C. Interest credited by bank not entered in Cash Book
If the bank has credited interest and the firm has not yet recorded it, the Pass Book balance becomes higher than the Cash Book balance. The other options generally reduce the Pass Book balance or do not affect it.

Which one of the following is the best sequence for preparing a Bank Reconciliation Statement?

A. Prepare Trial Balance, then Ledger, then BRS
B. Compare Cash Book and Pass Book, identify differences, then adjust the starting balance ✓
C. Enter all transactions in Journal, then prepare BRS
D. Prepare Trading Account, then BRS, then Balance Sheet

Answer: B. Compare Cash Book and Pass Book, identify differences, then adjust the starting balance
A BRS is prepared by comparing the Cash Book and Pass Book balances, identifying the causes of difference, and then adjusting the balance as per one book to find the other. This is the core reconciliation procedure.

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