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NCERT Class 11 Accountancy MCQ Chapter 5 Bank Reconciliation Statement
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Bank Reconciliation Statement
Chapter: 5
| PART – Ⅰ |
MULTIPLE CHOICE QUESTION ANSWER
1. To prepare a Bank Reconciliation Statement, which of the following documents is NOT needed?
(i) Cash Book balance.
(ii) Passbook or Bank Statement.
(iii) Sales ledger.
(iv) Details of both the cash book and bank statement.
Ans: (iii) Sales ledger.
2. Why does a business prepare a bank reconciliation statement?
(i) To track cash sales.
(ii) To reconcile the bank balance as per cash book with the passbook.
(iii) To record daily transactions.
(iv) To prepare financial statements.
Ans: (ii) To reconcile the bank balance as per cash book with the passbook.
3. What is the primary purpose of a cash book in business organisations?
(i) To record only cash sales.
(ii) To serve as a record for both cash and bank transactions.
(iii) To track only bank transactions.
(iv) To prepare financial statements.
Ans: (ii) To serve as a record for both cash and bank transactions.
4. What is the primary purpose of a cash book in business organisations?
(i) To record only cash sales.
(ii) To serve as a record for both cash and bank transactions.
(iii) To track only bank transactions.
(iv) To prepare financial statements.
Ans: (ii)To serve as a record for both cash and bank transactions.
5. If a bank reconciliation statement shows that the adjusted bank balance equals Rs.25,000 and the adjusted book balance equals Rs.24,500, what is the necessary action?
(i) Investigate a bank error.
(ii) Investigate a book error.
(iii) Adjust both balances to match.
(iv) No action needed.
Ans (ii) Investigate a book error.
6. What is the format of a bank reconciliation statement commonly used to show?
(i) Only additions to the cash book.
(ii) Additions and deductions to reconcile the cash book and passbook balances.
(iii) Detailed transactions for the entire year.
(iv) Only the bank charges incurred.
Ans: (ii)Additions and deductions to reconcile the cash book and passbook balances.
7. Which of the following transactions would not be recorded in the firm’s cash book until the bank statement is received?
(i) Payments made to suppliers.
(ii) Interest credited by the bank.
(iii) Cash sales.
(iv) Cheques issued.
Ans: (ii) Interest credited by the bank.
8. If the balance in the bank statement shows Rs. 6,500 (Dr.), with deposits of Rs. 1,000 not yet credited and unpresented cheques totaling Rs. 2,000, the balance in the Cash Book should be:
(i) Rs. 5,500 (Dr.)
(ii) Rs. 7,500 (Dr.)
(iii) Rs. 4,500 (Dr.)
(iv) Rs. 6,500 (Cr.)
Ans: (iii) Rs. 4,500 (Dr.)
9. If a business issues a cheque for Rs. 15,000, but it has not yet been presented for payment, how will it impact the bank reconciliation statement?
(i) Add Rs. 15,000 to the bank balance.
(ii) Deduct Rs. 15,000 from the bank balance.
(iii) Add Rs. 15,000 to the cash balance.
(iv) No adjustment needed.
Ans: (i) Add Rs. 15,000 to the bank balance.
10. Bank reconciliation description is composed of
(i) Bank Accountant.
(ii) Business Manager.
(iii) Business Accountant.
(iv) Controller of the bank.
Ans: (ii) Business Manager.
11. Why do the bank balance in a firm’s cash book and the bank statement usually not match?
(i) Due to different recording methods.
(ii) Due to entries not yet processed by the bank or firm.
(iii) Due to incorrect entries in one or both records.
(iv) All of the above.
Ans: (iv) All of the above.
12. Where are “Bank charges not recorded in the cash book” shown in a Bank Reconciliation Statement?
(i) As an addition in the (+) column.
(ii) As a deduction in the (-) column.
(iii) As an addition in the cash book balance.
(iv) Only in the bank’s records.
Ans: (ii) As a deduction in the (-) column.
13. In a Bank Reconciliation Statement, if the bank balance is higher than the book balance, which of the following could be a reason?
(i) Outstanding checks.
(ii) Service fees charged by the bank.
(iii) Deposits in transit.
(iv) Errors in the company’s accounting.
Ans: (iii)Deposits in transit.
14. On 02/09/2016, a transaction of 30,000.00 was recorded under “TO SELF.” How does this transaction affect the balance?
(i) It increases the balance.
(ii) It decreases the balance.
(iii) It does not impact the balance.
(iv) It is a service charge.
Ans: (ii) It decreases the balance.
15. When a firm receives a cheque from a customer, how is it initially recorded in the cash book?
(i) As a credit entry.
(ii) As a debit entry.
(iii) It is ignored until collected.
(iv) As a closing balance.
Ans: (ii) As a debit entry.
