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Questions
What is bank reconciliation statement?
What is meant by a Bank Reconciliation Statement in accounting?
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Solution
If every entry in the cash book matches with the bank statement, then the bank balance will be the same in both records. But, practically it may not be possible. When the balances do not agree with each other, the need for preparing a statement to explain the causes arises. This statement is called a bank reconciliation statement (BRS).
RELATED QUESTIONS
Answer in one sentence:
On which side is interest on bank deposit recorded in Pass Book?
Give one word/term/phrase which can substitute the following statement:
The account on which overdraft facility is allowed by bank.
Select the most appropriate alternative from those given and rewrite the following statement:
Bank Reconciliation Statement is prepared by _________.
State whether the following statement is True or False with reasons:
Businessman can prepare Bank Reconciliation statement only with Cash Book Balance.
A bank reconciliation statement is prepared to know the causes for the difference between:
Bank charges debited by the bank increases the balance as per bank statement.
Bank reconciliation statement is prepared to identify the causes of differences between balance as per bank column of the cash book and balance as per cash column of the cash book.
Correct and rewrite the following statement:
Bank Reconciliation Statement is prepared by Bank.
From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per Pass Book ₹ 20,000
- A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book
- Payment side of Cash Book was undercast by ₹ 100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book
From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per Pass Book ₹ 20,000.
- A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.
- Payment side of Cash Book was undercast by ₹ 100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
