Bank Reconciliation Statement – CS Foundation Fundamentals of Accounting and Auditing Notes

Bank Reconciliation Statement – CS Foundation Fundamentals of Accounting and Auditing Notes

→ Bank is “an establishment authorized by a government to accept deposits, pay interest, clear cheques, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers.”

→ Bank account has gone through many changes over the past half century. With many different types of account, offering a variety of benefits, it’s important to select the account that best suits your needs.

→ Types of Bank Account
A. Savings Accounts: These are intended to provide an incentive for individual to save money. You can make deposits and withdrawals, but there is a restriction on the number of amounts and amount of withdrawal that can be made. They pay interest on the deposits that are made. Because of its restriction regarding the withdrawal it does not suit the businessmen but is popular with individuals

B. Current account: Current Accounts are basically meant for businessmen. No interest is paid in current account but any number of transactions without limit can be made. On the other hand, banks charges certain service charges, on such accounts. Sometimes businessman is allowed to withdraw amount more then what is deposited balance available in their account. Such a facility of withdrawing more than the available balance money in their account is called overdraft

C. Fixed Deposit Account: Fixed deposits are bank accounts that require the account holder to make a deposit and agree to leave funds in the account for a specific amount of time. In return for this agreement, the financial institution pays interest to the account. Often, the interest paid on a FD is higher than the rate paid on other types of bank account.

D. Recurring Deposit Account: These are popularly known as RD accounts and are special kind of Term Deposits and are suitable for people who do not have lump sum amount of savings, but are ready to save a small amount every month. Normally, such deposits earn interest on the amount already deposited (through monthly installments) at the same rates as are applicable for Fixed Deposits/Term Deposits.

→ Bank Deposit: Bank Deposit refers to an amount of money in cash or check form or sent via a wire transfer that is placed into a bank account. The target bank account for the Bank Deposit can be any kind of account that accepts deposits. Deposits can be made by filling up a form called pay-in-slips which is deposited with the cashier of the bank and an acknowledgement is taken. Money deposited with the bank is debited to bank account.

→ Withdrawals: Withdrawal of money from the bank account can be made with the help of withdrawal slip provided by banks. Moreover withdrawal of money can be made by cheques which mentions the name of the person to whom the bank should pay money. Money withdrawn from the bank is credited to bank account.

→ Bank Pass Book: A Bank pass book is similar to a small notebook that contains your name, account number and certain other personal information about you. This book records all deposits and withdrawals.

→ Bank Reconciliation Statement: A company’s cash balance at bank and its cash balance according to its accounting records usually do not match. This is due to the fact that, at any particular date, checks may be outstanding, deposits may be in transit to the bank, errors may have occurred etc. Therefore companies have to carry out bank reconciliation process which prepares a statement accounting for the difference between the cash balance in company’s cash account and the cash balance according to its bank statement.

→ Following are the transactions which usually appear in company’s records but not in the bank statement:

  • Deposits in Transit: Deposits which have been sent by the company to the bank but have not been received by the bank at proper time before the issuance of bank statement.
  • Checks Outstanding: Checks which have been issued by the company but were not presented or cleared before the issuance of bank statement.
  • Service Charges: Service charges may have been deducted by the bank. Such charges are usually not known to the company before the issuance of bank statement.
  • Interest Income: If any interest income has been earned by the company on its bank account, it is not usually \ entered in company’s cash account before the issuance of bank statement.
  • Dishonour of Cheques: when cheques deposited with the bank but are dishonoured then such cheque amount is debited in the company books but not given any effect in company’s cash book
  • Direct payment made by the bank: For certain payments like insurance premium, electricity bills etc. Company given instructions to bank that they be paid by the bank at their own end. Such payments are shown in cash book but company account books forgets to show such payments made
  • Cheques received but not honoured: sometimes cheques are received and their entry is made in the books of company but they are not deposited with bank which shows the difference in the statement.
  • Errors: sometimes there may be errors in making the entry either by the company employee or bank employee

→ Need for a Bank Reconciliation statement: ‘Reconciliation’ between the cash book and the bank statement final balance simply means an explanation of the differences. This identification of the difference can prevent frauds, it shows the actual position of the Bank balance, highlights the causes of difference.

→ Procedure for preparation of Bank Reconciliation Statement: Cash book is the record of cash and bank transaction prepared by the entrepreneur and the pass book is the statement of accounts prepared by the bank. There are a lot of reasons due to which the balances of cash book and pass book do not match, and then bank reconciliation statement is prepared to reconcile both the balances.

→ Step 1: Adjusting the Balance as per Bank (Pass Book)
Balance as per Bank Statement on date, 2013
Adjustments:
Add : Deposits in transit
Deduct: Outstanding checks
Add or Deduct: Bank errors
Adjusted or corrected Balance per Bank

→ Deposits in transit – are amounts already received and recorded by the company, but are not yet recorded by the bank. Because deposits in transit are already included in the company’s Cash account, there is no need to adjust the company’s records. However, deposits in transit are not yet on the bank statement. Therefore, they need to be listed on the bank reconciliation as an increase to the balance per bank in order to report the true amount of cash.

→ Outstanding cheques- are cheques that have been written and recorded in the company’s Cash account, but have not yet cleared the bank account .Because all checks that have been written are immediately recorded in the company’s Cash account, there is no need to adjust the company’s records for the outstanding checks. However, the outstanding checks have not yet reached the bank and the bank statement.

→ Therefore, outstanding checks are listed on the bank reconciliation as a decrease in the balance per bank.

→ Bank errors: are mistakes made by the bank. Bank errors could include the bank recording an incorrect amount, entering an amount that does not belong on a company’s bank statement, or omitting an amount from a company’s bank statement. The company should notify the bank of its errors. Depending on the error, the correction could increase or decrease the balance shown on the bank statement.

→ A helpful rule of thumb is “put it where it isn’t.”

→ Step 2. Adjusting the Balance per Cash Book
The second step of the bank reconciliation is to adjust the balance in the company’s Cash account so that it is the true, adjusted, or corrected balance Balance per Books on date, 2013 Adjustments
Deduct: Bank Service charges
Deduct: NSF cheques & fees
Deduct: Cheque printing charges
Add: Interest earned
Add: Notes receivable collected by bank
Add or Deduct: Errors in Company’s Cash Account

→ Adjusted or Corrected Balance per Book
Bank service charges are fees deducted from the bank statement for the bank’s processing of the checking account activity. Other types of bank service charges include the fee charged when a company overdraws its checking account and the bank fee for processing a stop payment order on a company’s cheque. The bank might deduct these charges or fees on the bank statement without notifying the company. When that occurs the company usually learns of the amounts only after receiving its bank statement.

→ An NSF cheque or bounced cheque is a cheque that was not honored by the bank of the person or company writing the cheque because that account did not have a sufficient balance. As a result, the cheque is returned without being honored or paid. (NSF is the acronym for not sufficient funds. Often the bank describes the returned cheque as a return item. Because the bounced cheque and the related bank fee have already been deducted on the bank statement, there is no need to adjust the balance as per the bank. However, if the company has not yet decreased its Cash account balance for the returned cheque and the bank fee, the company must decrease the balance in cash book in order to reconcile.

  • Add the interest earned by the company and not recorded in cash book but included in bank pass book.
  • Errors or omissions in the cash book can lead to a difference between the balance as per bank statement and the balance as per cash book
  • A helpful rule of thumb is “put it where it isn’t.”

→ Step 3. Comparing the Adjusted Balances:
After adjusting the balance per bank (Step 1) and after adjusting the balance per books (Step 2), the two adjusted amounts should be equal. If they are not equal, you must repeat the process until the balances are identical. The balances should be the true, correct amount of cash as of the date of the bank reconciliation.

→ Step 4. Preparing bank reconciliation statement when overdraft balance is given – Sometimes a businessman withdraws excess amount from the bank account and the closing bank balance of a month is a debit balance. This balance amount is called ‘overdraft balance’ as per Pass Book. This is shown in the cash book as a credit balance. Overdraft balance is to be shown in the minus column of statement as the starting point. The other steps shall remain same.

→ Step 5. Preparing Bank Reconciliation statement when extract of cash book and pass book are given – when extracts of cash book and pass book are given then while preparing the reconciliation statement firstly the heading should be given mentioning the name of the business and the period for which cash book and pass book are prepared. After this the bank reconciliation statement be prepared.

Bank Reconciliation Statement MCQ Questions – CS Foundation Fundamentals of Accounting and Auditing

Question 1.
For withdrawal of money from account, what is to be submitted?
a. Fixed deposit receipt
b. Fixed deposit account receipt
c. Deposit receipt
d. Receipt
Answer:
a. Fixed deposit receipt

Question 2.
Bank does not pay interest on the following account
a. Recurring deposit account
b. Fixed deposit account
c. Savings account
d. None of the above
Answer:

Question 3.
Pay in slips are NOT used for depositing money in
a. Current account
b. Saving account
c. Fixed deposit account
d. None of the above
Answer:
c. Fixed deposit account

Question 4.
X deposited rupees 500 in Bank account
a. Bank account will be credited
b. Bank account will be debited
c. Saving account will be debited
d. All of the above
Answer:
b. Bank account will be debited

Question 5.
The purpose of preparing a Bank Reconciliation Statement is to:
a. Ascertain that the difference between the Cash book balance and the Bank Statement balance has been accounted for
b. Correct errors in the Cash book or errors in the Bank statement
c. Amend the balance of the Bank Statement of the firm
d. Amend the balance in the Cash book of the firm
Answer:
c. Amend the balance of the Bank Statement of the firm

Question 6.
For keeping the bank pass book up to date the responsibility is passed on to
a. Bank
b. Client
c. Creditor
d. All of the above
Answer:
b. Client

Question 7.
It is not true for bank reconciliation statement
a. That the bank balance as per cash book and pass book able some
b. Prepared on a particular date .
c. A single transaction is recorded both in bank pass book as well as bank cash book.
d. The transaction in the cash book one recorded as per client new point.
Answer:
a. That the bank balance as per cash book and pass book able some

Question 8.
Bank reconciliation sometimes points to the need for adjusting entries. Invariably how should it be done?
a. The reconciliation of the ending balance per the bank statement to the adjusted cash balance.
b. The reconciliation of the cash balance per the company records to the adjusted cash balance.
c. Both a and b
d. None of the above.
Answer:
a. The reconciliation of the ending balance per the bank statement to the adjusted cash balance.

Question 9.
At the happening of below mentioned event what will happen. A cheque is deposited with bank
a. Bank pass book will be credited
b. Bank pass book will be debited
c. Bank’s column in cash book is debited
d. Bank’s column in cash book is credited
Answer:
c. Bank’s column in cash book is debited

Question 10.
Collection charges and incidental charges are first reflected in
a. Pass book
b. Cash book
c. Bank statement
d. None o the above
Answer:
a. Pass book

Question 11.
The proper treatment of unrecorded deposits (deposits in transit) on a bank reconciliation is to show them as an
a. addition per book balance of cash
b. deduction per book balance of cash
c. addition per bank statement balance
d. deduction per bank statement balance
Answer:
c. addition per bank statement balance

Question 12.
Some of the transaction that is dependent on bank statement are
a. Collection charges
b. Dividends received
c. Rent received
d. All of the above
Answer:
d. All of the above

Question 13.
Bank reconciliation statement points out
a. Credibility of the balance shown in pass book.
b. Savings account
c. Fixed deposit account
d. Recurring deposit account.
Answer:
a. Credibility of the balance shown in pass book.

Question 14.
Bank reconciliation statement is prepared on
a. Yearly basis from Jan to December
b. Certain period basis
c. As on particular date
d. Both a & b
Answer:
d. Both a & b

Question 15.
Base of reconciliation statement is
a. Balance shown in cash book
b. Balance shown in pass book
c. Either a or b
d. Nor a nor b
Answer:
c. Either a or b

Question 16.
An enterprise take cash book balance as the base for preparation of bank reconciliation statement. Some of the bank charges have been put. These charges will be
a. Added in cash book
b. Deducted in cash book
c. Nothing is to be done for this entry
d. None of the above
Answer:
b. Deducted in cash book

Question 17.
In case of on enterprise having an overdraft facility the bank reconciliation statement treats all the cheques deposited but not cleared in the cash book to be
a. Added
b. Deducted
c. To be revealed only in pass book
d. To be revealed only in cash book
Answer:
a. Added

Question 18.
Overdraft balance as per cash book will be
a. Shown in minus column of bank reconciliation statement
b. Shown in ‘plus’ column of bank reconciliation statement
c. Will be carried forward for next period
d. None of the above
Answer:
b. Shown in ‘plus’ column of bank reconciliation statement

Question 19.
Banks objective is to
a. Collect money on behalf of client
b. Give loans to client
c. Accept deposits of clients
d. All of the above
Answer:
d. All of the above

Question 20.
The proper treatment of outstanding cheques on a bank reconciliation is to show them as a
a. addition per book balance of cash
b. deduction per book balance of cash
c. addition per bank statement balance
d. deduction per bank statement balance
Answer:
d. deduction per bank statement balance

Question 21.
Favourable balance of cash book implies the
a. Credit balance of cash book
b. Debit balance of cash book
c. Bank overdraft
d. Adjusted balance of cash book
Answer:
b. Debit balance of cash book

Question 22.
A check returned by bank marked “NSF” means that
a. Bank can’t verify your identify
b. There are not sufficient funds in your account
c. Check has been forged.
d. Check can’t be cashed being illegal
Answer:
b. There are not sufficient funds in your account

Question 23.
In the Bank reconciliation statement “Deposit in transit” is usually
a. Subtracted from bank balance
b. Added to bank balance
c. Added to cash book balance
d. Subtracted from cash book balance
Answer:
b. Added to bank balance

Question 24.
Bank reconciliation statement is prepared by
a. Accountant of the business
b. Manager of the business
c. Controller of the bank
d. Accountant of the bank
Answer:
a. Accountant of the business

Question 25.
Which of the following error results in unadjusted cash book balance?
a. Outstanding cheques
b. Unpresented cheques
c. Deposit in transit
d. Omission of Bank charges
Answer:
d. Omission of Bank charges

Question 26.
Bank charges amounting to Rs 5000 was not entered in the cash book. Identify the correct adjustment in accounts
a. Bank charges will be debited in cash book.
b. Bank charges will be added to cash book balance
c. Bank charges will be credited in cash book
d. Bank charges need no adjustment in cash book
Answer:
c. Bank charges will be credited in cash book

Question 27.
Unpresented cheques are also referred as
a. Uncollected cheques
b. Uncredited cheques
c. Outstanding cheques
d. Bounced cheques
Answer:
c. Outstanding cheques

Question 28.
_____________ are cheques that are issued by the business but not yet presented to bank
a. Uncollected cheques
b. Uncredited cheques
c. Outstanding cheques
d. Bounced cheques
Answer:
c. Outstanding cheques

Question 29.
A record of transaction between the bank and the holder _____________ of is bank statement
a. A foreign currency account
b. A current account
c. A saving account
d. All of the given options
Answer:
d. All of the given options

Question 30.
What is true about a reconciliation Statement? It is a statement:-
a. Sent by the bank when we have made and error
b. Sent by the bank when we the account is overdrawn
c. Drawn up by the bank to verify the cash book
d. Drawn up by us to verify our cash book balance with the bank statement balance
Answer:
d. Drawn up by us to verify our cash book balance with the bank statement balance

Question 31.
Which is the statement that is uncommon for a Bank Reconciliation Statement?
a. Part of the double entry system
b. Not part of the double entry system
c. Sent by the firm to the bank
d. Posted to the ledger accounts.
A (i), (iii) and (iv)
B (i), and (ii)
C (i), (ii) and (iv)
D (i), (iii) and (iv)
Answer:
c. Sent by the firm to the bank

Question 32.
The recording of financial transactions and events manually or electronically is called
a. Bookkeeping
b. Information technology
c. Reporting
d. Auditing
Answer:
d. Auditing

Question 33.
The cash account on the balance sheet should not include which of the following, items:
a. Travel advances to employees
b. Currency
c. Money orders
d. Deposits in transit
Answer:
a. Travel advances to employees

Question 34.
How would deposits in transit be handled when reconciling the ending cash balance as per the bank statement to the correct adjusted cash balance?
a. Added to be balance per the bank statement.
b. Subtracted from the balance per the bank statement
c. Added to the balance per company records.
d. Ignored.
Answer:
b. Subtracted from the balance per the bank statement

Question 35.
A cash deposit made by business appears on the bank statement as ____________ balance
a. Debit
b. Credit
c. Expense
d. Liability
Answer:
b. Credit

Question 36.
The trading securities owned by a company are:
a. Reported on the balance sheet as a current asset.
b. Reported on the balance sheet as a noncurrent asset.
c. Reported on the balance sheet as a contraequity asset.
d. Reported on the balance sheet as a reduction of liabilities.
Answer:
a. Reported on the balance sheet as a current asset.

Question 37.
When a person who is maintaining accounts is not able to differentiate between capital expenditure and revenue expenditure it is
a. Errors of Principle
b. Errors of ommission
c. Errors of commission
d. All of the above
Answer:
a. Errors of Principle

Question 38.
Adjusted profit and loss are used in
a. Budgetary control technique
b. Information technique
c. Financial accounts preparation technique
d. For bounced cheques
Answer:
a. Budgetary control technique

Question 39.
An account used for carrying temporarily doubtful receipts or disbursements and discrepancies is
a. Suspense account
b. Debit balance
c. Bank overdraft
d. Adjustment account
Answer:
a. Suspense account

Question 40.
Standing orders are
a. Credited in the cash book
b. Debited in the cash book
c. Entered in the bank statement
d. Entered in the petty cash balance
Answer:
a. Credited in the cash book

Question 41.
A company was entered in hire purchase agreement and had to pay Rs1000 per month. Three payment we accounted but no entry was found in cash book. Indentify the correct adjustment in cash book.
a. Rs 1000 will be added to cash book balance
b. Rs2000 will be deducted from cash book balance
c. Rs3000 will be added to cash book balance
d. Rs3000 will be subtracted from cash book balance.
Answer:
a. Rs 1000 will be added to cash book balance

Question 42.
Bank sent debit advice of Rs500 to company on overdraft. It wasn’t entered in cash book. What will be the adjustment in cash book.
a. Rs 500 will be debited
b. Rs 500 will be credited
c. Non-adjustable
d. Rs 1000 will be subtracted
Answer:
b. Rs 500 will be credited

Question 43.
In bank reconciliation statement the account of outstanding checks is added to ______________ balance of cash
a. Book adjusted
b. Unadjusted
c. Understand
d. Overstated
Answer:
a. Book adjusted

Question 44.
Balance as per cash book (adjusted) = Rs 1000, unpresented checks = Rs. 2000, uncredited checks = Rs. 500, compute the balance as per bank statement
a. Rs 2000
b. Zero
c. Rs 3000
d. Rs 2500
Answer:
a. Rs 2000

Question 45.
A discount of Rs2000 was given to a supplier on his prompt repayment of debt but the cashier did not enter in the cash book. What should be the adjustment in cash to work out the correct balance of cash book?
a. Rs2000 will be debited in cash book
b. Rs 2000 will be credited in cash book
c. Rs 4000 will be debited in cash book
d. Rs4000 will be credited in the cash book
Answer:
b. Rs 2000 will be credited in cash book

Question 46.
If a cheque written by a firm is not canceled by the bank and returned with the month’s bank statement, the firm should
a. adjust the balance in the firm’s checkbook to reflect the data that appears in the bank’s records.
b. immediately notify the bank requesting that it correct its records.
c. consider this check as outstanding when preparing the bank reconciliation.
d. Consider this check to be lost and issue a replacement check.
Answer:
c. consider this check as outstanding when preparing the bank reconciliation.

Question 47.
Bank reconciliation statement is the comparison of the bank statement with
a. Cash receipt Journal
b. Cash payment Journal
c. Cash book
d. Financial statements
Answer:
c. Cash book

Question 48.
The proper treatment on the bank reconciliation of a debit memorandum issued by the bank is to show it as an
a. addition per book balance of cash
b. deduction per book balance of cash
c. addition per bank statement balance
d. deduction per bank statement balance
Answer:
b. deduction per book balance of cash

Question 49.
The proper treatment on the bank reconciliation of a note collected by the bank for the depositor is to show it as an
a. addition per book balance of cash
b. deduction per book balance of cash
c. addition per bank statement balance
d. deduction per bank statement balance
Answer:
a. addition per book balance of cash

Question 50.
The proper treatment on the bank reconciliation of an NSF cheque of a customer that is returned with the bank statement is to show it as a(an)
a. addition per book balance of cash
b. deduction per book balance of cash
c. addition per bank statement balance
d. deduction per bank statement balance
Answer:
b. deduction per book balance of cash

Question 51.
If the bookkeeper recorded a bank deposit of Rupees 450, but the bank recorded the deposit at its correct amount of Rupees 540. The bank reconciliation will require a/an
a. addition per book balance of cash
b. deduction per book balance of cash
c. addition per bank statement balance
d. deduction per bank statement balance
Answer:
a. addition per book balance of cash

Question 52.
The bookkeeper recorded a cheque at Rupees 340.56 for store supplies. The cheque was recorded by the bank at its correct amount of Rupees 430.65. The bank reconciliation will require a/an
a. addition per book balance of cash
b. deduction per book balance of cash
c. addition per bank statement balance
d. deduction per bank statement balance
Answer:
b. deduction per book balance of cash

Question 53.
Who prepares Bank Reconciliation Statement?
a. Bank employee
b. Customer of bank or his representative or his accountant
c. Both (a) and (b)
d. None of the above.
Answer:
b. Customer of bank or his representative or his accountant

Hint:
Companies do bank reconciliation process which prepares a statement accounting for the difference between the cash balance in company’s cash account and the cash balance according to its bank statement.

Question 54.
For the purpose of bank reconciliation statement, only the Rs. column of the cash book is to be considered.
a. Cash
b. Bank
c. Cash and Bank
d. Discount
Answer:
b. Bank

Hint:
‘Reconciliation’ between the cash book and the bank statement is the purpose of Bank reconciliation.

Question 55.
Bank balance as per” cash book of ABC Enterprises as on 31 st March, 2013 is f 1,500. Cheques deposited with bank but not cleared amount to f 100 and cheques issued but not presented for payment amount to f 150. The bank allowed interest amounting to Rs.50 and collected dividend Rs.50 on behalf of ABC Enterprises. Balance as per pass book should be:
a. Rs. 1,600
b. Rs. 1,850
c. Rs. 1,450
d. Rs. 1,650.
Answer:
d. Rs. 1,650.

Hint:
Bank Reconciliation Statement – CS Foundation Fundamentals of Accounting and Auditing Notes 1

Question 56.
Which of the following is true about bank reconciliation statement
a. Bank reconciliation statement need not to be prepared where the balance of cash book and pass book matches
b. Bank reconciliation statement is to be prepared necessarily as per the Income tax Act, 1961
c. Bank reconciliation statement is prepared on yearly basis
d. Bank reconciliation statement is to be prepared and supplied by bank
Answer:
a. Bank reconciliation statement need not to be prepared where the balance of cash book and pass book matches

Hint:
‘Reconciliation’ between the cash book and the bank statement final balance simply means an explanation of the differences. If there is no difference that there is no need fo the preparation of reconciliation statement.

Question 57.
Cash book shows Dr. balance Rs. 10,000, cheque issued Rs. 4,000 and cheques presented Rs. 3,000. calculate the balance as per pass book.
a. 13,000
b. 7,ooo
c. 6,000
d. 10,000
Answer:
b. 7,ooo

Hint:
Bank Reconciliation Statement – CS Foundation Fundamentals of Accounting and Auditing Notes 2

Question 58.
If the cheque is not .presented for the payment upto the date of the preparation of the Bank Reconciliation Statement then the balance as per pass book will be:
a. Higher than the balance shown by the cash book by the amount of unpresented cheque.
b. Same as shown by the cash book
c. Twice the balance shown by the cash book
d. Lower than the balance shown by the cash book by the amount of unpresented cheque
Answer:
a. Higher than the balance shown by the cash book by the amount of unpresented cheque.

Hint:
Checks Outstanding: Checks which have been issued by the company but were not presented or cleared before the issuance of bank statement.

In such case the difference in the bank statement and the balance shown in the pass book is more than the balance shown by the Cash book because entry in the cash book is made the time cheque is issued by the company but since the cheque has not been presented bank statement doesn’t reflect it.

Question 59.
The pass book shows and overdraft of Rs. 2,000. It was discovered that cheques of Rs. 200, Rs. 40 and Rs. 37 respectively has not been presented for payments and a cheque of Rs. 100 paid into account had not been cleared. The balance as per the cash book will be:
a. Rs. 2,177 (Cr.)
b. Rs. 1,977 (Cr.)
c. ‘ Rs. 1,977 (Dr.)
d. Rs. 2,177 (Dr.)
Answer:
d. Rs. 2,177 (Dr.)

hint:
Bank Reconciliation Statement – CS Foundation Fundamentals of Accounting and Auditing Notes 3

Question 60.
Bank Balance as per cash book of ABC Enterprises as on 31 SI March, 2013 is Rs. 1, SOJ cheques deposited with bank but not cleared amount to Rs. 100 and cheques issued but not presented for payment amount to Rs. 150. The bonk allowed interest amounting Rs. 50 and collected dividend Rs. 50 on behalf Gf ABC Enterprises, Balance as per pass book should be:
a. Rs. 1,600
b. Rs. 1,850
c. Rs. 1,450
d. Rs. 1,650.
Answer:
d. Rs. 1,650.

Hint:
Bank Reconciliation Statement – CS Foundation Fundamentals of Accounting and Auditing Notes 4

Question 61.
A credit balance in the bank statement indicates:
a. Cash at bank
b. Cash in hand
c. Bank overdraft
d. Overpayment to creditors.
Answer:
a. Cash at bank

CS Foundation Fundamentals of Accounting and Auditing Notes