Refer to MCQs for Accountancy Class 11 with Answers Chapter 5 Bank Reconciliation Statement designed as per the latest syllabus issued by CBSE. All Multiple choice questions have been provided with solutions and have been prepared based on the expected pattern in upcoming board exams. MCQs Chapter 5 Bank Reconciliation Statement have been prepared by our team of best accountancy teachers

Question Bank Reconciliation Statement is prepared   
(a) to know the payments made through cheques.
(b) to know the errors in the Pass Book.
(c) to compare the Cash Book with Pass Book and ascertain the differences.
(d) None of the above.

Question. A bank reconciliation statement is prepared by
(a) Creditors
(b) Bank
(c) Account holder in a bank
(d) Debtors

Question. Passbook is a copy of:
(a) Customer account
(b) Bank column of cash book
(c) Cash column of cash book
(d) Receipts and payments

Question. A bank reconciliation statement is mainly prepared for
(a) Reconcile the cash balance of the cash book
(b) Reconcile the difference between the bank balance shown by the cash book and bank passbook
(c) Both (a) and (b)
(d) None of these

Question. A Bank Reconciliation Statement is:
(a) A part of cash book 
(b) A part of pass book
(c) A statement prepared by bank     
(d) A statement prepared by a customer

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)

Question If balance in the bank statement shows Rs. 3,000 (Dr.) and there are deposits of Rs. 800 not yet credited and unpresented cheques totalling Rs. 500, the balance in the Cash Book should be   
(a) Rs. 3,300 (Cr.).
(b) Rs. 2,700 (Cr.).
(c) Rs. 4,300 (Cr.).
(d) Rs. 1,700 (Dr.).

Question. Unfavourable bank balances means:
(a) Credit balance in the cash book
(b) debit balance in the pass book 
(c) Debit balance in the cash book
(d) Favourable balance in the cash book

Question. The balance on the debit side of the bank column of cash book indicates?
(a) The total amount has drawn from the bank
(b) Cash at bank
(c) The total amount overdraft in the bank
(d) None of above

Question. When check is not paid by the bank, it is called?
(a) Honored
(b) Endorsed
(c) Dishonored
(d) a & b

Question. Bank statement also called?
(a) Pass book
(b) Cash book
(c) Credit book
(d) Debit book

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.

Question Bank Reconciliation Statement is 
(a) a part of Double Entry System.
(b) not a part of Double Entry System,
(c) part of Bank Statement.
(d) None of these.

Question. ‘NSF’ marked in cheque sent back by the bank indicates
(a) Cheque has been forged
(b) A bank couldn’t verify the identity
(c) No sufficient money
(d) A cheque cannot be cashed because it’s illegal

Question Pass Book of the account holder is a copy of 
(a) the bank columns in the Cash Book of the account holder.
(b) the relevant account in the books of a bank.
(c) the cash columns in the Cash Book of a customer.
(d) None of the above.

Question. On the bank statement, cash deposited by the company is known as
(a) Credit
(b) Debit
(c) Liability
(d) Expenses

Question Following details are related to a firm’s banking transactions at 31st March, 2019. Balance as per bank statement Rs. 22,650; uncleared lodgements Rs. 3,110; unpresented cheques Rs. 6,290. Bank credit recorded twice by bank in error as Rs. 650.
Which balance for cash at bank should appear in the Balance Sheet as at 31st March, 2019?   
(a) Rs. 18,820.
(b) Rs. 20,120.
(c) Rs. 25,180.
(d) Rs. 26,480.

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

Question. The cheque which is issued to creditor but is not presented for payment is called?
(a) Uncredited cheque
(b) Outstanding cheque
(c) Omitted cheque
(d) Dishonoured cheque

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.).

Question. Directly collections of bank are to be ___________ in cash book?
(a) Dr
(b) Cr
(c) both
(d) None

Question Bank Reconciliation Statement is prepared so that the difference between the undermentioned balances can be reconciled: 
(a) Difference in the balance in the bank and the cash balance.
(b) Difference in the balances in the Pass Book in the beginning and at the end.
(c) Difference in the Pass Book and Cash Book balances.
(d) None of the above.

Question Mohan’s bank reconciliation statement shows cheques deposited but not credited by bank of Rs. 3,800 and cheques issued but not presented by suppliers of Rs. 3,500. His bank balance as per Cash Book is Rs. 25,000. Balance as per pass book statement is   
(a) Rs. 25,000.
(b) Rs. 24,700.
(c) Rs. 25,300.
(d) Rs. 32,300.

Question. The main function of a commercial bank is to?
(a) Barrow and lend money
(b) Only barrow money
(c) Only lend money
(d) None of theses

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.).

Question. Farkhanda Jabeen Ltd. receives a check for Rs. 100 records it in cash book and deposits it on the same day. A statement sent by the bank that day does not show this Rs. 100. How is this shown on the bank reconciliation statement?
(a) As an uncredited deposits added to the bank statement balance
(b) As an uncredited deposits deducted from the bank statement balance
(c) As an Unpresented check added to the bank statement balance
(d) As an Unpresented check deducted from the bank statement balance

Question. Uncollected checks are also known as?
(a) Outstanding checks
(b) Uncleared checks
(c) Outstation checks
(d) Both b & c

Question. Statement that explain the causes of difference between cash book and bank statement is called:
(a) Bank Statement
(b) Financial Statement
(c) Income Statement
(d) Bank Reconciliation statement

QuestionBank Reconciliation Statement is prepared by matching 
(a) entries in Pass Book with entries in bank columns of Cash Book.
(b) entries in Pass Book with entries in cash columns of Cash Book.
(c) entries in Pass Book with entries in bank columns and cash columns of Cash Book.
(d) None of the above.

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

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

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.

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

Question. Customer’s copy of the account provided by the bank to the depositor to record deposits and withdrawals is called:
(a) Sales Book
(b) Cash Book
(c) Pass Book
(d) Purchases Book

Question. Credit balance as per pass book is?
(a) Unfavourable balance
(b) Favourable balance
(c) Both a & b
(d) None

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

Question. A Bank Reconciliation Statement is prepared to know the causes for the difference between:
(a) The balance as per cash column of Cash Book and the Pass Book
(b) The balance as per bank column of Cash Book and the Pass Book
(c) The balance as per bank column of Cash Book and the balance as per cash column of Cash Book
(d) Neither of the above

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

Question. Credit Balance in the Cash Book means:
(a) Overdraft as per Pass Book
(b) Credit balance as per Pass Book
(c) Debit balance in the Cash Book
(d) Neither of these

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

Question Balance shown in the Balance Sheet is of   
(a) Cash Book.
(b) Pass Book.
(c) Adjusted Cash Book.
(d) None of these.

QuestionDebit balance in the Cash Book is equivalent to   
(a) Overdraft as per Pass Book.
(b) Credit balance as per Pass Book,
(c) Overdraft as per Cash Book.
(d) None of these.

Question Which of the following will not require adjustment in the Cash Book balance? 
(a) Cheque issued but not presented for payment.
(b) Cheque deposited but not cleared.
(c) Cheque wrongly credited by bank.
(d) All of the above.

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

Question. When the balance as per Cash Book is the starting point, direct deposit by customer is
(a) Added
(b) Subtracted
(c) Not required to be adjusted
(d) Neither of the two

Question. Debit balance in the Pass book means ____
(a) Negative balance
(b) Positive balance

Question. Credit balance in the Pass book means ____
(a) Negative balance
(b) Positive balance

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

Question. A bank reconciliation is prepared by the
(a) Bank
(b) Creditors
(c) Business
(d) Supplier

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

Question. Normally the cash book shows a …………….balance , pass book shows a ……..balance
(a) Credit, debit
(b) Debit, credit
(c) Credit. credit
(d) Debit, debit

Question. Direct deposits in the bank by a customer would increase the balance shown by the Pass Book.
(a) True
(b) False

Question. Credit balance in the pass book means a/an……………………..to the depositor
(a) Asset
(b) Liability
(c) Income
(d) Expense

Question. A bank reconciliation statement is prepared with the balance of
(a) Cash book
(b) Passbook
(c) Either Cashbook or Pass Book
(d) Neither Cashbook or Pass Book

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.

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

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

Question. Accounting furnishes data on,
(a) Income and cost for the managers
(b) Financial conditions of the institutions
(c) Company’s tax liability for a particular year
(d) All of the above

Question. The assets that can be easily converted into cash within a short period (i.e., 1 year or less is known as,
(a) Current assets
(b) Fixed assets
(c) Intangible assets
(d) Investments

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

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

Question. Gross profit is,
(a) Cost of goods sold + Opening stock
(b) Excess of sales over cost of goods sold
(c) Sales fewer Purchases
(d) Net profit fewer expenses of the period

Question. Which of these best explains fixed assets?
(a) Are bought to be used in the business
(b) Are expensive items bought for the business
(c) Are items which will not wear out quickly
(d) Are of long life and are not purchased specifically for resale

Question. Suppliers personal a/c are seen in the,
(a) Sales Ledger
(b) Nominal ledger
(c) Purchases Ledger
(d) General Ledger

Question. Entered in the Purchases Journal are,
(a) Discounts received
(b) Purchases invoices
(c) Payments to suppliers
(d) Trade discounts

Question. When a petty cash book is kept there will be:
(a) No entries made at all in the general ledger for items paid by petty cash
(b) The same number of entries in the general ledger
(c) Fewer entries made in the general ledger
(d) More entries made in the general ledger

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

Question. A debit note is a document made out when goods are
(a) returned
(b) overcharged
(c) sold
(d) undercharged

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

Question. Credit notes issued for goods returned to a supplier will be entered firstly in the
(a) General journal
(b) Returns inwards journal
(c) Returns outwards journal
(d) Petty cash journal