CBSE Class 11 Accountancy Bank Reconciliation Statement Worksheet

 1. Meaning of Bank Reconciliation
Statement Bank reconciliation statement is prepared mainly to reconcile the difference between the bank balance as shown by the cash book and bank balance as shown by bank pass book.

2. Need and Importance of Bank
Reconciliation Statement
(i) It helps in locating any error that may have been committed while recording either in the cash book or in the pass book.
(ii) It helps in bringing out the unnecessary delay in the collection of cheques by the bank.
(iii) Embezzlements are avoided by regular periodic reconciliation.
(iv) The customer is assured of the correctness of the bank balance shown by the pass book, by preparing a bank reconciliation statement.
(v) It helps the management to keep a track of cheques which have been sent to the bank for collection.

3. Reasons of Difference between Cash Book and Pass Book Balances The differences between the cash book and the bank pass book is caused by
(i) Differences Due to Timing on Recording any Transaction
(a) Cheques issued by the bank but not yet presented for payment.
(b) Cheques paid/deposited into the bank but not yet collected.
(ii) Transactions Recorded by the Bank
(a) Direct debits made by the bank on behalf of the customer.
(b) Amounts directly deposited in the bank account by the customer.
(c) Interest and dividend collected by the bank.
(d) Direct payments made by the bank on behalf of the customers.
(e) Interest credited by the bank but not recorded in the cash book.
(f) Cheque deposited/bills discounted dishonoured.
(iii) Differences Caused by Errors
(a) Errors committed in recording transactions by the firm.
(b) Errors committed in recording transactions by the bank.

4. Preparation of Bank Reconciliation Statement without Adjusting Cash Book Balance Under this approach, the balance as per cash book or the balance as per pass book is taken as the starting item. The debit balance or favourable balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance or favourable balance as per the pass book.

On the other hand, the credit balance or unfavourable balance as per the cash book indicates bank overdraft. Such a balance will be a debit balance or unfavourable balance as per the pass book. An overdraft is treated as negative figure on a bank reconciliation statement.
When the starting point or the first item in the statement is the overdraft (unfavourable) balance, it is to be shown on the minus side. It is to be noted, all the items in case of overdraft are dealt in the same manner, as in the case of favourable balances (whether cash/pass book).
Unfavourable balance or overdrafts implies credit balance in cash book or debit balance in pass book.

5. Format of Bank Reconciliation Statement
When the bank balance as per cash book is taken as a starting point

Bank Reconciliation Statement
as on…
(Here enter the date on which the statement is being prepared)

Particulars                                                                                              Plus (`)            Minus (`)
Balance as per Cash Book (Favourable, i.e. debit balance)                       …
or Overdraft as per Cash Book (Unfavourable, i.e. credit balance)             …
(+) Transactions having the effect of higher balance in pass book
Cheques deposited into the bank but not recorded in cash book                …
Cheques issued but not yet presented for payment                                    …
Interest allowed in pass book only                                                               …
Bills receivable directly collected by bank                                                    …
Direct payment by a customer into bank but not recorded in cash book.    …
‘Cheques issued’ returned on technical grounds                                         …
A wrong credit given by bank in pass book                                                                        …
(–) Transactions having the effect of lower balance in pass book
Cheques received and recorded in bank column but not yet sent to bank for
collection                                                                                                                             …
Cheques deposited but not yet collected by bank                                                              …
Bank charges, interest on overdraft debited in pass book only                                          …
Insurance premium paid directly by bank under standing advice                                       …
Cheques deposited for collection, returned dishonoured and recorded in pass
book only                                                                                                                            …
Discounted bills dishonoured but not recorded in cash book                                             …
A wrong debit given by bank in pass book                                                                         …
Balance as per Pass Book                                                                                                 …
                                                                                                                 …                       …

-When balance as per pass book is taken as the starting point, the treatment of all items will be reversed, i.e. items that are added, will be deducted and items that are deducted,will be added.
- Either favourable balance or overdraft shall appear.
- If the total of ‘plus items column’ exceeds the total of ‘minus items column’ the difference between the two is termed as favourable balance. If the total of ‘minus items column’ exceed the total of ‘plus item column’, the difference between the two is termed as an overdraft.

CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statemen MCQs

Question. Which of the following is not a reason due to time difference on recording of the transactions while preparing bank reconciliation statement?
a) Unpresented cheques.
b) Uncollected cheques.
c) Payment side of cash book overcast.
d) Direct deposit by Customer into bank.
Answer. (C)

Question. Which of the following is not a reason due to errors made by the business while preparing bank reconciliation statement?
a) Uncollected cheques.
b) Receipt side of Cash Book overcast
c) Cheques debited in Cash Book but not banked.
d) Bank Charges recorded twice in Cash Book.
Answer. (A)

Question. When Bank Reconciliation Statement is prepared with Credit balance as per Pass Book, the Balance derived will be
a) Credit Balance as per Cash Book
b) Debit Balance as per Pass Book
c) Debit Balance as per Cash Book
d) Both (A) and (C)
Answer. (D)

Question. Choose an item that will increase the credit balance of Pass Book but Cash Book Balance will remain unaffected till information is not received
a) Interest allowed by Bank
b) Directly deposited by customer into Bank
c) Rent Collected by Bank on our behalf
d) All of above.
Answer. (D)

Question. Unfavourable bank balance means
(a) credit balance in pass book
(b) credit balance in cash book
(c) debit balance in cash book
(d) None of the above
Answer. D

Question. If a cheque is not paid by the bank, it is known as ……… .
(a) Cancelled
(b) Dishonoured
(c) Honoured
(d) None of these
Answer. B

Question. If the cash book balance is taken as starting point the items which make the cash book balance smaller than the pass book must be ……… for the purpose of reconciliation.
(a) deducted
(b) added
(c) multiplied
(d) divided
Answer. B

Question. If bank balance as per cash book isRs 50,000, cheques issued but not presented for payment of Rs 6,000 and bank charges of Rs 400 were not entered in the cash book, then balance as per pass book will be
(a) Rs 50,000
(b) Rs 56,000
(c) Rs 55,600
(d) Rs 56,400
Answer. C

Question. If balance as per the cash book is Rs 54,000 and Rs 100 for bank incidental charges are debited to Anil & Co. account, which is not recorded in cash book and cheques for Rs 5,400 is deposited in the bank but not yet collected by the bank, then what will be the balance in the pass book?
(a) Rs 48,500
(b) Rs 59,500
(c) Rs 59,300
(d) None of these
Answer. A

Question. The debit balance in Naman’s cash book is Rs 40,960. A bill for Rs 9,900 discounted with the bank is entered in the cash book without recording the discount charges of Rs 900. What will be the amount in pass book?
(a) Rs 40,960
(b) Rs 40,060
(c) Rs 41,860
(d) None of these
Answer. B

Question. Overdraft is shown in the cash book as a ……… balance.
(a) debit
(b) credit
(c) Either (a) or (b)
(d) None of these
Answer. C

Question. In the bank statement, where the balance is followed by Dr means that there is an
(a) overdraft
(b) positive balance
(c) zero balance
(d) None of the above
Answer. A

Question. An overdraft is treated as positive figure in a bank reconciliation statement.
(a) True
(b) False
(c) Can’t say
(d) Partially tBrue
Answer. B

Question. On 31st March, 2021, P had an overdraft of Rs 8,000 as shown by his cash book. Cheques amounting to Rs 2,000 had been paid by him but were not collected by the bank. He issued cheques of Rs 800 which were not presented to the bank for payment. What will be the balance as per bank pass book?
(a) Rs 9,200 favourable balance
(b) Rs 9,200 overdraft
(c) Rs 6,800 favourable balance
(d) Rs 6,800 overdraft
Answer. B

Question. If cheques are not presented for payment, the favourable balance as per cash book will be less than the favourable balance as per pass book.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. Direct collections received by the bank on behalf of the customers worth Rs 25,000 would increase the balance as per the bank pass book, when compared to the balance as per the cash book.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. On 31st March, 2021, the bank column of the cash book of XYZ Ltd. showed a credit balance of Rs 1,18,100. Cheques received and recorded in the cash book but not sent to the bank for collection of Rs 12,400. Payment received from a customer directly by the bank of Rs 27,300 but no entry was made in the cash book. What will be the balance as per bank pass book?
(a) Rs 1,03,200 overdraft
(b) Rs 1,33,000 overdraft
(c) Rs 1,03,200 favourable balance
(d) Rs 1,33,000 favourable balance
Answer. A

Question. Find out the bank balance as per cash book if overdraft as per pass book isRs 10,000 and cheques deposited in the bank but not credited are for Rs 4,000.
(a) Rs 6,000 favourable balance
(b) Rs 6,000 overdraft
(c) Rs 14,000 favourable balance
(d) Rs 14,000 overdraft
Answer. B

Question. A cheque of Rs 500 received from a debtor was recorded in the cash book but not deposited in the bank for collection. How will it be treated for the purpose of bank reconciliation statement?
(a) Rs 500 will be deducted from the balance as per pass book.
(b) Rs 500 will be deducted from the balance as per cash book.
(c) Rs 500 will be added to the balance as per cash book.
(d) None of the above
Answer. B

Question. A cheque of Rs 50,000 is deposited by a firm but it got dishonoured due to insufficient balance in firm’s account. What will be the reason for difference in bank balance in cash book and pass book?
(a) Cheque entry in pass book but not in cash book.
(b) Cheque entry in cash book but not in pass book.
(c) Cheque entry in both pass book and cash book.
(d) None of the above
Answer. B

Question. An auto debit transaction made by bank for which approval is given by the company causes difference in bank balance in cash book and pass book because
(a) Entry in pass book but not in cash book.
(b) Entry in cash book but not in pass book.
(c) Entry in both pass book and cash book.
(d) None of the above
Answer. A

CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statemen Fill In The Blanks

Question. Cash Book shows a credit balance of Rs 7,500 , if there is no reconciliation the pass book will show __________ balance of Rs __________.
Answer. debit , Rs 7,500

Question. Overdraft as per Cash book is Rs 10,000. Uncollected cheques are Rs 2,500 and unpresented cheques were Rs 3,500. The ________ balance as per pass book is Rs ________.
Answer. debit , Rs 9,000

Question. If Pass book is showing credit balances of Rs 8,000. A cheque deposited in Bank for Rs 2,000 returned dishonoured and the same cheque was not recorded in Cash Book earlier. The Cash Book will show _______balance of Rs. ___________.
Answer. debit , Rs 8,000

Question. Cash book overdraft is more than Pass Book overdraft, when payment side of Cash Book is ________.( Overcast / undercast)
Answer. Overcast

Question. Cheque issued but returned due to technical error would _________ the overdraft as per Cash Book while preparing Bank Reconciliation Statement with overdraft as per Cash Book. (increase/decrease)
Answer. decrease

Question.Cheque issued and debited in the Pass Book but omitted to be recorded in Cash Book would _____________ the Cash book Balance. (Overcast/ undercast)
Answer. Overcast

Question. Cheque issued recorded on the credit side of the Cash book in Cash Column would not affect the bank balance of ___________. ( Cash Book / Pass Book)
Answer. Cash Book

CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statemen True And False 

1. Cash Book shows a credit balance of Rs 7,500 , if there is no reconciliation the pass book will show credit balance of Rs 7,500 [False]

2. If Pass book is showing credit balances of Rs 8,000. A cheque deposited in Bank for Rs 2,000 returned dishonoured and the same cheque was not recorded in Cash Book earlier. The Cash Book will show debit balance of Rs. 800. [False]

3. Cash book overdraft is more than Pass Book overdraft, when payment side of Cash Book is overcastted. [True]

4. Cheque issued and debited in the Pass Book but omitted to be recorded in Cash Book would Overcast the Cash book Balance. [True]

5. Cheque issued recorded on the credit side of the Cash book in Cash Column would not affect the bank balance of Cash Book [True]

CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statemen Match The Following

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Pass book Rs is given?
1. A bill of exchange of Rs 6,000 was discounted      a) 5,800 Plus side
with bank for Rs 5,800 was dishonoured but
Rs 6,000 was credited in the cash book.
2. A bill of exchange of Rs 6,000 was discounted      b) 6,000 minus side
with bank for Rs 5,800 was dishonoured but
Rs 5,800 was credited in the cash book.
                                                                                   c) 200 Plus side
                                                                                   d) None of the above
Answer. 1-c;2-d

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Cash book Rs is given?
1. A bill of exchange of Rs 6,000 was discounted with    a) 5,800 Plus side
bank for Rs 5,800 was dishonoured but Rs
6,000 was credited in the cash book. 
2. A bill of exchange of Rs 6,000 was discounted with    b) 6,000 minus side
bank for Rs 5,800 was dishonoured but
Rs 5,800 was credited in the cash book.
                                                                                         c) 200 minus side
                                                                                         d) None of the above
Answer. 1-c;2-d

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Pass book Rs is given?
1. Receipt side of cash book was       a) 2,000 Plus side
overcast by Rs 2,000. 
2. Payment side of cash book            b) 2,000 minus side
was undercast by Rs 2,000.
                                                          c) none of the above
Answer. 1-a;2-a

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Cash book Rs is given?
1. Receipt side of cash book was        a) 2,000 Plus side
overcast by Rs 2,000. 
2. Payment side of cash book was      b) 2,000 minus side
undercast by Rs 2,000.
                                                            c) none of the above
Answer. 1-b;2-b

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Cash book Rs is given?
1. Cheque of Rs 350 paid into bank ,      a) 880 Plus side
but bank credited Rs 530 by mistake
2. Cheque of Rs 350 paid into bank ,      b) 880 minus side
but bank Debited Rs 530 by mistake
                                                                c) 180 Plus side
                                                                d) 180 minus side
Answer. 1-c;2-b

CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statemen Case Based MCQs

Direction Read the following case study and answer questions on the basis of the same.

On 31st March, 2021, the bank pass book of Radha showed a balance of Rs 15,000 to her credit and it differed with the balance reflected in her cash book. Before that date, she had issued cheques amounting to Rs 8,000 out of which cheques amounting to Rs 3,200 have so far been presented for payment. A cheque of Rs 2,200 deposited by her into the bank on 26th March, 2021 is not yet credited in the pass book. She had also received a cheque of Rs 500 which although entered by her in the bank column of cash book, was omitted to be paid into the bank. On 30th, March 2021, a cheque of Rs 1,570 received by her was paid into bank but the same was omitted to be entered in the cash book. There was a credit of Rs 150 for interest on current account and a debit of Rs 25 for bank charges.

Question. As per the given case, what could be the possible reason for difference in balance of cash book and pass book?
(a) Timing differences in recording of transactions.
(b) Errors made by the business.
(c) Both (a) and (b)
(d) None of the above
Answer. C

Question. On 30th March, 2021, a cheque of Rs 1,570 received by her was paid into bank but the same was omitted to be entered in the cash book is an example of
(a) timing differences in recording of transactions.
(b) errors made by the business.
(c) errors made by the bank.
(d) None of the above
Answer. B

Question. How will a credit of Rs 150 for interest on current account be treated while preparing the bank reconciliation statement?
(a) Added to balance of pass book
(b) Deducted from balance of pass book
(c) Ignored
(d) None of the above
Answer. B

Question. ‘‘She had issued cheques amounting toRs 8,000 out of which cheques amounting to Rs 3,200 have so far been presented for payment.’’ What will be the amount deducted from the balance of pass book to reconcile it with the balance of cash book?
(a) Rs 8,000
(b) Rs 3,200
(c) Rs 4,800
(d) None of the above
Answer. C

Question. What will be the balance as per cash book on 31st March, 2021?
(a) Rs 11,205
(b) Rs 15,000
(c) Rs 17,725
(d) None of the above
Answer. A

Q1) What is Bank Reconciliation statement? What is the purpose of preparing such a statement?

Q2) On comparing the cash book of Mr. Aggarwal with the Bank Pass Book, the following discrepancies were noted:

   a) Out of Rs.20,500 paid in cash, and by cheques into the bank on 27th March, cheque amounting to Rs.7,500 were collected on 7th April.

   b) Cheque and cash amounting to Rs.4,800 were deposited in bank on 26th March but credit was given for Rs.3,800 only.

   c) Out of cheques amounting to Rs.7,800 drawn on 26th March, a cheque for Rs.2,500 was encashed on 3rd April.

   d) Cheques issued to creditor amounting to Rs.20,000 on 25th March, of which cheques worth Rs. 3,000 were presented to bank upto 31st March.

   e) A cheque for Rs.1,000 entered in cash book but omitted to be banked on 31st March.

   f) A cheque for Rs.600 deposited into bank but omitted to be recorded in cash book and was collected by the bank on 30thMarch.

   g) A bill receivable for Rs.520 previously discounted( discount Rs.20) with the bank had been dishonoured but advice was received on 1st April.

   h) A bill for Rs.10,000 was retired /paid by the bank under a rebate of Rs.150 but the full amount of the bill was credited in the bank column of the cash book.

   i) A cheque of Rs.1,080 credited in the pass book on March 28 being dishonoured is debited again in the pass book on 1st April. There was no entry in the cash book about the dishonour of the cheque until 15th     April.

   j) A cheque of Rs.200 drawn on his saving deposit account has been shown as drawn on current account in cash book.

Prepare a bank reconciliation statement as at 31st March, 2011 if the balance as per cash book on 31st March, 2011 was Rs.39,570.

Q3) From the following particulars, prepare a Bank Reconciliation statement of Govind as on 31st December, 2011:

   a) Balance as per pass book on 31st December, 2011 is Rs.8,500

   b) Cheques for Rs.5,100 were issued during the month of December, but of these cheques for Rs.1,200 were presented in the month of January, 2012 and one cheque for Rs.200 was not presented for payment.

   c) Cheques and cash amounting to Rs.4,800 were deposited in bank in the month of December, but credit was given for Rs.3,800 only.

   d) Bank has paid a bill payable amounting to Rs.1,000 but it has not been entered in the cash book and a bill receivable of Rs.500 which was discounted with the bank was dishonoured by the drawee on due date.

   e) The bank has charged Rs13 as its commission for collecting outstation cheques and has allowed interest Rs.10 on the trader’s balance.

   f) Interest on investments Rs. 2,500 collected by bank appeared in the Pass Book.

   g) An entry of Rs. 30 of a payment by a customer directly into the bank appears in the pass book.

   h) Interest on overdraft amounting to Rs.1,200 did not appear in the cash book.

Important Questions for NCERT Class 11 Accountancy Bank Reconciliation Statement 

Question. A bank reconciliation statement is :
(a) A part of Cash Book
(b) A part of Pass Book
(c) A statement prepared by the bank
(d) A statement prepared by a customer 

Answer :  D

Question. A Pass Book is a copy of
(a) A customer’s account in the bank’s books
(b) Cash Book relating to bank column
(c) Cash Book relating to cash column
(d) Firm’s receipts and payments 

Answer :  A

Question Current account shows Rs. 1,000 as overdrawn. When bank statement is received, it was identified that one of debtors has deposited Rs. 400 into the account and bank charges of Rs. 20 had been debited to the account. Bank Statement balance is
(a) Rs. 1,420 (Dr.).
(b) Rs.620(Dr.).
(c) Rs. 4,300 (Cr.).
(d) Rs. 1,700 (Dr.). 

Answer :  B

Question Cash book balance was Rs. 1,790 (Dr.). When compared with the bank statement, it was identified that unpresented cheques were Rs. 1,040 and deposits not credited were Rs. 820. Balance of the bank statement will
(a) Rs. 70 (Dr.).
(b) Rs. 1,570 (Cr.).
(c) Rs. 2,010 (Cr.).
(d) Rs. 3,650 (Cr.). 

Answer :  C

Question. A bank reconciliation statement is prepared with the balance of
(a) Cash Book
(b) Pass Book
(c) Either Cash Book or Pass Book
(d) Neither Cash Book nor Pass Book 

Answer :  C

Question. A bank reconciliation statement is prepared to ascertain the causes of differences between
(a) The balance as shown by the cash column of Cash Book with the balance of the Pass Book
(b) The balance as shown by the bank column of Cash Book with the balance of the Pass Book
(c) The balance as shown by the cash column of the Cash Book with that shown by its bank column
(d) The balance as shown by the Cheque Book and Pass Book. 

Answer :  B

Question. Unfavourable bank balance means
(a) Credit balance in the Cash Book
(b) Credit balance in the Pass Book
(c) Debit balance in the Cash Book
(d) Favourable balance in the Cash Book 

Answer :  A

Question. A bank reconciliation statement is prepared by
(a) Bank
( b) Customers of the bank
(c) Creditors
(d) Auditor 

Answer :  B

Question Bank Reconciliation Statement is prepared by
(a) Creditors.
(b) Debtors.
(c) Bank.
(d) Account holder. 

Answer :  D

Question. Which of the following will not be considered while preparing an Amended Cash Book?
(a) Cheques issued but not presented for payment
(b) Cheques deposited but not credited by bank
(c) Any wrong entry in the Pass Book
(d) All of the above 

Answer :  D

Important Questions for NCERT Class 11 Accountancy Bank Reconciliation Statement 

Question Bank Reconciliation Statement is prepared
(a) at the end of each week.
(b) at the end of each month.
(c) at the end of the accounting year.
(d) whenever a bank statement is received.

Answer :  D

Question A business receives its hank statement showing the closing balance as Rs. 8,500 overdrawn. It is found that there were unpresented cheques amounting to Rs. 2,000 and uncredited deposits amounted to Rs. 1,500. Overdraft as per Cash Book is
(a) Rs. 5,000.
(b) Rs. 8,000.
(c) Rs. 9,000.
(d) Rs. 12,000.

Answer :  C

Question. Which of the following transactions will result in higher balance in the bank column of Cash Book in comparison to Pass Book?
(a) Cheques issued but not presented for payment
(b) Interest allowed by bank
(c) Bank charges entered twice in Cash Book
(d) Cheques paid into bank for collection but not yet credited

Answer :  D

Question. Find out the Bank Balance as per Cash Book from the following particulars :
(i) Overdraft as per Pass Book = Rs. 5,000.
(ii) Cheques deposited into the bank but not credited = Rs.2,000
(a) Favourable Balance = Rs.3,000
(b) Overdraft = Rs.3,000
(c) Favourable = Rs.7,000
(d) Overdraft = Rs.7,000

Answer :  B

Question. Which of the following is not a part of Double Entry System?
(a) Cash Book
(b) Trial Balance
(c) Journal
(d) Bank Reconciliation Statement

Answer :  D

Question. The credit balance as per Cash Book is Rs. 1,500. Cheques for Rs.400 were deposited but were not collected. The cheques issued but not presented were Rs.100, Rs. 125 and Rs.50. Balance as per Pass Book will be :
(a) Rs.l,100 Debit
(b) Rs. 1,625 Debit
(c) Rs.2,175 Credit
(d) Rs. l,625 Credit

Answer :  B

Question. Bank charges Rs.5,000 debited twice in pass book. What should be done in BRS if overdraft as per cash book is starting point?
(a) Rs.5,000 must be deducted
(b) Rs.5,000 must be added
(c) Rs. 10,000 must be deducted
(d) Rs. 10,000 must be added

Answer :  B

Question. Overdraft as per Cash Book is Rs. 10,000. Cheques deposited but not credited Rs.2,500. Cheques issued but not encashed Rs.3,500. What is the balance as per Pass Book?
(a) Balance Rs.9,000
(b) Overdraft Rs.9,000
(c) Overdraft Rs. 11,000
(d) Balance Rs. 11,000

Answer :  B

Question. Payment done by the account holder through issuing a cheque is entered in
(a) the Pass Book at the time of issuing the cheque
(b) the Pass Book at the time of presenting the cheque to the bank for payment
(c) the Cash Book at the time of issuing the cheque
(d) Both (b) and (c)

Answer :  D

Question. The bank pass book of M/s IF & Co. showed a credit balance of Rs 45,000 on 31st May, 2021. Cheques issued before 31st May, 2021, amounting to Rs 25,940 had not been presented for encashment. There was also a debit in the pass book of Rs 2,500 in respect of a cheque dishonoured on 31st May, 2021. What is the balance as per cash book?
(a) Rs 68,440
(b) Rs 73,440
(c) Rs 21,560
(d) None of these 
Answer. C

Question. The bank pass book of KYA Ltd. had an overdraft of Rs 20,000. Interest on overdraft was Rs 2,000. Insurance premium paid by the bank was Rs 200.
What is the balance as per cash book?
(a) Rs 22,200 overdraft
(b) Rs 22,200 favourable balance
(c) Rs 17,800 overdraft
(d) Rs 17,800 favourable balance
Answer. C

Question. Nita’s current account shows an overdraft of Rs 5,000 as per her cash book. When she receives her bank statement, she noticed that one of her debtors had deposited Rs 2,500 into her account and the bank has debited Rs 100 as bank charges. Thus, balance as per bank statement will be
(a) Rs 5,000 favourable
(b) Rs 2,600 overdraft
(c) Rs 2,600 favourable
(d) None of these
Answer. B

Question. When payments are made by the bank as per the standing instructions of the customer, the balance in the pass book will be more as compared to the cash book.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. B

Question. The payment side of the cash book was under cast by Rs 100. How will it be treated for the purpose of bank reconciliation statement?
(a) Rs 100 will be deducted from the balance as per pass book.
(b) Rs 100 will be deducted from the balance as per cash book.
(c) Rs 100 will be added to the balance as per cash book.
(d) None of the above
Answer. B

Question. One outgoing cheque of Rs 300 was recorded twice in the cash book. How will it be treated for the purpose of bank reconciliation statement?
(a) Rs 600 will be added to the balance as per cash book.
(b) Rs 300 will be deducted from the balance as per cash book.
(c) Rs 300 will be added to the balance as per cash book.
(d) None of the above
Answer. C

Question. Cheques issued but not presented for payment will reduce the balance as per the pass book.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. B

Question. How is ‘deposit in transit’ treated in bank reconciliation?
(a) It will be added to bank balance.
(b) It will be deducted from bank balance.
(c) It will be deducted from the cash book balance.
(d) It will be added to cash book balance.
Answer. A

Question. Overdraft as per the pass book will be less than the overdraft as per cash book, when there are cheques deposited but not collected by the banker worth Rs 5,000.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. B

Question. The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. A cheque of Rs500 deposited into bank but was not recorded in the cash book.How will it be treated for the purpose of bank reconciliation statement?
(a) Rs 500 will be deducted from the balance as per pass book.
(b) Rs 500 will be deducted from the balance as per cash book.
(c) Rs 500 will be added to the balance as per pass book.
(d) None of the above
Answer. A

Question. Interest collected by bank from investments amounts to Rs 2,000. How will it be treated for the purpose of bank reconciliation statement?
(a) Rs 2,000 will be deducted from the balance as per cash book.
(b) Rs 2,000 will be added to the balance as per pass book.
(c) Rs 2,000 will be added to the balance as per cash book.
(d) None of the above 
Answer. C

Question. There is a wrong entry on the credit side of the pass book worth Rs 990. How will it be treated for the purpose of bank reconciliation statement?
(a) Rs 990 will be deducted from the balance as per cash book.
(b) Rs 990 will be added to the balance as per pass book.
(c) Rs 990 will be added to the balance as per cash book.
(d) None of the above
Answer. C

Question. Dividend collected by bank from investments amounts to Rs 1,500. How will it be treated for the purpose of bank reconciliation statement?
(a) Rs 1,500 will be deducted from the balance as per pass book.
(b) Rs 1,500 will be added to the balance as per pass book.
(c) Rs 1,500 will be deducted from the balance as per cash book.
(d) None of the above
Answer. A

Question. When the pass book balance is taken as the starting point, items which make the pass book balance ……… than the balance in the cash book must be deducted for the purpose of reconciliation.
(a) higher
(b) lower
(c) equal
(d) None of the above
Answer. A

Question. If the overdraft as per the pass book is taken as the starting point, the cheques issued but not presented are to be ……… in the bank reconciliation statement.
(a) deducted
(b) added
(c) ignored
(d) None of these
Answer. B

Question. A wrong entry on debit side of the pass book will be added to the balance as per pass book to reconcile the statements.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. If the credit balance as per the pass book is taken as the starting point, then Rs 39,000 directly deposited by the customer in the bank account is to be ……… in the bank reconciliation statement.
(a) deducted
(b) added
(c) ignored
(d) None of these
Answer. A

Question. If the balance as per the cash book is taken as the starting point, then a wrong entry on the debit side of the pass book for Rs 2,000 is to be ……… in the bank reconciliation statement.
(a) deducted
(b) added
(c) ignored
(d) None of these
Answer. A

CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statemen Case Based MCQs

Direction Read the following case study and answer questions on the basis of the same.

Vinni has joined as an intern in Elegance Ltd a FMCG company. She has joined under the accounting department. Her supervisor Ms. Mini works as an accountant in Elegance Ltd. On day 1 of her internship, Vinni is taught how to prepare a bank reconciliation statement. Vinni is completely new to the topic and wasn’t aware about the need and procedure for preparation of bank reconciliation statement. Later, Ms Mini explained her the need and procedure for preparation of bank reconciliation statement and asked her to prepare the bank reconciliation statement for Elegance Ltd for the month of March, 2021.

Question. Using which of the following statements wouldMsMini have explained the need of bank reconciliation statement to Vinni?
(a) To match the balances as it is generally experienced that when a comparison is made between the bank balance as shown in the firm’s cash book and the bank statement, the two balances do not tally.
(b) To find out the cash balance.
(c) To understand liquidity position of the firm.
(d) None of the above
Answer. A

Question. Using which of the following statements would Ms Mini have explained the importance of bank reconciliation statement to Vinni?
(a) It helps to assure the customer about the correctness of the bank balance shown by the pass book.
(b) It helps the management to keep a track of cheques, which have been sent to the bank for collection.
(c) Embezzlements are avoided by regular periodic reconciliation.
(d) All of the above
Answer. D

Question. How would have Ms Mini classified the reasons for differences between cash book and bank book balances?
(a) Timing differences in recording of the transactions.
(b) Errors made by the business or by the bank.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer. C

Question. What documents of Elegance Ltd does Vinni require for preparation of bank reconciliation statement?
(a) Cash book of Elegance Ltd
(b) Pass book of Elegance Ltd
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer. C

Question. ‘Debit balance as per pass book and credit balance as per cash book is a favourable balance’. You are required to answer on Vinni’s behalf whether the above statement is
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. B

Direction Read the following case study and answer questions on the basis of the same.

On 31st March, 2021, Mr. Dua’s cash book showed a bank balance of Rs 3,72,000. It differed with the balance shown in his pass book. A closer scrutiny revealed that there were cheques issued to creditors but not yet presented to the bank for payment amounted to Rs 72,000.
Dividend of Rs 5,000 was received by the bank but not entered in the cash book. Interest of Rs 1,250 was allowed by the bank. Cheques of Rs 15,400 were deposited into bank for collection but not collected by bank upto this date. Bank charges amounted to Rs 200. A cheque of Rs 320 deposited into bank was dishonoured but no intimation was received. Bank paid house tax of Rs 350 on his behalf but no information was received from the bank in this connection.

Question. Cheques issued to creditors but not yet presented to the bank for payment amounting to Rs 72,000 will be
(a) added to debit balance of cash book.
(b) deducted from debit balance of cash book.
(c) ignored.
(d) None of the above
Answer. A

Question. Cheques of Rs 15,400 were deposited into bank for collection but not collected by bank will be
(a) added to debit balance of cash book.
(b) deducted from debit balance of cash book.
(c) ignored.
(d) None of the above
Answer. B

Question. Difference caused due to bank charges amounting to Rs 200, is an example of
(a) timing differences in recording of transactions.
(b) errors made by the business.
(c) errors made by the bank.
(d) None of the above 
Answer. A

Question. Bank paid house tax of Rs 350 on his behalf but no information was received from the bank will lead to
(a) balance in cash book greater than the balance of pass book.
(b) balance in cash book lesser than the balance of pass book.
(c) balance in pass book greater than the balance of cash book.
(d) None of the above
Answer. A

Question. What is the balance of pass book on 31st March, 2021?
(a) Rs 4,33,980
(b) Rs 4,50,250
(c) Rs 3,72,000
(d) None of these
Answer. A

Direction Read the following case study and answer questions on the basis of the same.

On 31st December, 2021, the cash book of Mittal Bros showed a credit balance of Rs 6,920. There is a stark difference in the balance as per pass book. A careful scrutiny points out that there was a debit by bank for Rs 200 on account of interest on overdraft and Rs 50 on account of charges for collecting bills. Cheques drawn but not encashed before 31st December, 2021 were for Rs 4,000. The bank has collected interest and has credited Rs 600 in pass book. A bill receivable for Rs 700 previously discounted with the bank had been dishonoured and debited in the pass book. Cheques paid into bank but not collected and credited before 31st December, 2021 amounted to Rs 6,000.

Question. Credit balance in cash book reflects
(a) overdraft
(b) favourable balance
(c) nil balance
(d) None of these
Answer. A

Question. Credit balance of bank account as per cash book essentially means
(a) bank account becomes negative and the businesses in effect have borrowed from the bank.
(b) there is high positive balance in bank account.
(c) business has paid all its bank loans.
(d) None of the above
Answer. A

Question. While preparing the bank reconciliation statement, bills receivable for Rs 700 previously discounted with the bank now dishonoured, will
(a) increase the credit balance of cash book.
(b) decrease the credit balance of cash book.
(c) will not affect the credit balance of cash book.
(d) None of the above
Answer. A

Question. While preparing the bank reconciliation statement, cheques drawn but not encashed before 31st December, 2021 for Rs 4,000 will be
(a) added to credit balance of cash book.
(b) deducted from credit balance of cash book.
(c) ignored.
(d) None of the above
Answer. A

Question. What will be the balance as per pass book on 31st December, 2021?
(a) Rs 6,920
(b) Rs 9,270
(c) Rs 4,570
(d) Rs 13,870
Answer. B

CLASS XI BANK RECONCILIATION STATEMENT WORKSHEET 6

1. The bank column of a cash book showed a debit balance of 49000 on June 30, 2015. Entries in the cash book and the pass book were compared and the following differences were noticed:

a) Cheques of Shyam 9000 and of Mohan 15000 were deposited but were not collected upto June 30, 2015.

b) Ramesh, a creditor, deposited a cheque of 8000 directly into the bank.

c) Bank allowed an interest of 500

d) Cheque for 10000 issued to Radhey Shyam was not presented for payment.

e) Bank debited the account by 6000 being insurance premium

f) Bank debited the account by 100, being bank charges.

2. On 31st March, 2016 the pass book of Mr.Menon’s Current Account showed a credit balance of 20000. Prepare B

a) Mr.Menon issued a cheque of 300 on 25th March but this was not presented for payment whereas this was recorded twice in the cash book.

b) A cheque of 200 drawn on his savings deposit account has been shown as drawn on the current account in the cash book.

c) A cheque of 285 issued on 28th March, was entered in the cash column.

d) In the pass book, a bank charge of 25 was recorded twice while another bank charge of 17 was not recorded in the cash book.

e) Bank paid LIC premium of 1500 as per standing instructions.

3. Prepare a BRS of Mr. Jayan as on 31st March 2015 from the following information:

a) Balance as per pass book is 10000

b) Bank collected a cheque of 500 on behalf Jayan but wrongly credited to Jayant Account.

c) Bank recorded a cash deposit of 2589 as 2598

d) Withdrawal column of the pass book under cast by 100

e) The credit balance of 1500 as on page 10 of the pass book was recorded on page 11 as a debit balance.

f) The payment of a cheque of 350 was recorded twice in pass book

g) The pass book showed a credit for a cheque of 1000 deposited by Jayant.

h) Dividend directly collected by bank 125.

4. Prepare BRS from the following:

a) Overdraft as per cash book 180000

b) Overdraft as per pass book 213900

c) Cheque deposited into the bank but no entry passed in the cash book 3000

d) Cheque received and entered into cash book but not sent to the bank 10000

e) Credit side of the bank column casted short 1000

f) Insurance premium paid directly by the bank understanding order 5000

g) Bank charges entered in the cash book twice 100

h) Cheque received returned by the bank but no entry passed 4000

i) Cheque issued returned on technical grounds 3000

j) Bill discounted dishonoured 40000

k) Bills receivable directly collected by the bank 20000.

5. Prepare BRS as on 30th June 2015 for Jyothi sales private Ltd.

a) Bank overdraft as per cash book on 30th June 2015, 110 450

b) Cheques issued on 20th June, 2015 but not yet presented 15000

c) Cheques deposited but not yet credited by the bank 22750

d) Bills for collection not advised by the bank but credited to the account 47200

e) Interest debited by bank on 27th June, 2015 but no advice received 12115.

f) Subsidy received from the authorities by the bank on our behalf credited to the account 22000

g) Amount wrongly debited by the bank 2400

h) Amount wrongly credited by the bank 5000.

6. You are given the following particulars:

a) Debit balance in the bank column as per the cash book on 31st March 2016 was 50000.

b) Cheques and drafts deposited into bank but not collected 5000

c) Cheques of 10000 were issued but not presented for payment.

d) Bank charges of 50 for expenses which were not yet entered in the cash book

e) Interest on investment 3000 was collected by the bank but not yet entered in the cash book.

Pass necessary entries in the cash book and then prepare a BRS on 31st March, 2016.

7. From the following information supplied by Gokul, prepare BRS as on December 31st, 2015.

a) Bank overdraft as per the pass book 16500

b) Cheques issued but not presented for payment 8750.

c) Cheques deposited with the bank but not collected 10500

d) Cheques recorded in the cash book but not sent to the bank for collection 2000

e) Payment received from customers directly by the bank 3500

f) Bank charges debited in the pass book 200

g) Premium on life policy of Gokul paid by the bank on standing advice 1980

h) A bill of 3000 discounted with bank in November dishonoured on December 31st, 2006 and noting charges paid by the bank 100.

8. On comparing the Cash Book of Mr. Seigal with the Bank Pass Book, the following discrepancies were noted:

(a) Out of 20, 500 paid in cash and by cheques into the bank on 27th March, cheque amounting to 7,500 was collected on 7th April.

(b) Cheque and cash amounting to 4,800 were deposited in bank on 26th March but credit was given for 3, 800 only.

(c) Out of cheques amounting to 7,800 drawn on 26th March, a cheque for 2, 500 was encashed on 3rd April.

(d) Cheques issued to creditor amounting to 20, 000 on 25th March of which cheques worth 3, 000 were presented to bank up to 31st March.

(e) A cheque for 1,000 entered in cash book but omitted to be banked on 31st March.

(f) A cheque for 600 deposited into bank but omitted to be recorded in cash book and was collected by the bank on 30th March.

(g) A bill receivable for 520 previously discounted (discount 20) with the bank had been dishonoured but advice was received on 1st April.

(h) A bill for 10000 was retired/paid by the bank under a rebate of 150 but the full amount of the bill was credited in the bank column of the cash book.

(i) A cheque of 1,080 credited in the pass book on March 28 being dishonoured is debited again in the pass book on 1st April. There was no entry in the cash book about the dishonor of the cheque until 15th April.

(j) A cheque of 200 drawn on his savings deposit account has been shown as drawn on current account in cash book

Prepare a Bank Reconciliation Statement as at 31st March 2015 if the balance as per cash book on 31st March 2010 was 39,570

9. The bank overdraft of Wills Ltd., on December 31, 2014 as per cash book is 18,000

From the following information, Ascertain the adjusted cash balance and prepare bank reconciliation statement

(i) Unpresented cheques 6,000

(ii) Uncleared cheques 3,400

(iii) Bank interest debited in the passbook only 1,000

(iv) Bills collected and credited in the passbook only 1,600

(v) Cheque of Arun traders dishonoured 1,000

(vi) Cheque issued to Kapil & Co. not yet entered in the 600 of cash book.

10. The following is the summary of a cash book for December, 2014.

Cash Book (Bank Column)

To Receipts

13221

By Balance b/d

6849

To Balance c/d

4986

By Payments

11358

18207

18207

All receipts are banked and payments are made by cheques. On investigation the following are observed:

1. Bank charges of 1,224 entered in the bank statement have not been entered in cash book.

2. Cheques drawn amounting to 2,403 have not been presented to the bank for payment.

3. Cheques received totalling 6,858 have been entered in the cash book and deposited in the bank, but have not been credited by the bank until January, 2005.

4. A cheque for 198 has been entered as a receipt in the cash book instead of as payment.

5. A cheque for 225 has been debited by the bank in error.

6. A cheque received for 720 has been returned by the bank and marked “No funds available”, no adjustment had been made in the cash book.

7. All dividends receivable are credited directly to the bank account. During December, an amount of 558 was credited by the bank and no entry is made in the cash book.

8. A cheque drawn for 54 has been incorrectly entered in the cash book as 594.

9. The balance brought forward should have been 639. 10. The bank statement as on December, 31, 2004 showed an overdraft of

10,458. (a) You are required to prepare an amended cash book and (b) Prepare a bank reconciliation statement as on Dec. 31, 2014.