Bank Reconciliation Statement (Theory)

Payment done by the account holder through issuing a cheque is entered in

• the Pass Book at the time of issuing of the cheque

• the Pass book at the time of presenting the cheque to the bank for payment

• the cash book at the time of issuing the cheque

• both (b) and (c)

Unfavourable Bank Balance means

• credit balance in the Cash Book

• Credit balance in the Pass Book

• Debit Balance in the Cash Book

• Favourable balance in the Cash Book

A Bank REconciliation Statement is prepared with the balance of

• Cash Book

• Pass Book

• Either Cash Book or Pass Book

• Neither Cash Book or Pass Book

The following are the differences caused by the time gap except:

• interest allowed by the bank

• direct deposit by customers into the bank

• errors committed in recording transaction by the bank

• bank charges and commission charged by the bank

BRS is important because:

• it locates the errors and omission

• facilitates the preparation of a revised Cash Book

• helps in revealing unnecessary delay in the collection of cheques by the bank

• all of the above

which of the following is correct?

• Unfavourable Balance/ Debit Balacne as per Cash Book

• Unfavourable Balance/ Credit Balance as per Cash Book

• Favourable Balance/ Debit Balance as per Pass Book

• Overdraft / Credit Balance as per Pass Book

Balance as per Bank Statement means

• Balance as per Pass Book

• Balance as per Bank Book

• Balance as per Ledger Account

• Both (a) and (b)

While preparing BRS from the Balance of Cash Book indicate whether cheques paid into the bank but not yet cleared will be written in :

• plus column

• minus column

• will not be recorded

• will be shown as footnote

A BRS is prepared by

• Bank

• Customer

• creditor

• Auditor

BRS is prepared

• at the end of each week

• at the end of each month

• at the end of accounting year

• whenever an accountant wants to do it