Balbharati solutions for Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board chapter 6 - Bank Reconciliation Statement [Latest edition]

Answer in one sentence:

Who prepares a bank Pass Book?

Answer in one sentence:

What is pay-in-slip?

Answer in one sentence:

What is bank overdraft?

Answer in one sentence:

What is withdrawal slip?

Answer in one sentence:

Who sends the bank statement?

Answer in one sentence:

What does a debit balance in Cash Book represent?

Answer in one sentence:

Who prepares the Bank Reconciliation Statement?

Answer in one sentence:

What does debit balance in Pass Book represent?

Answer in one sentence:

On which side is interest on bank deposit recorded in Pass Book?

Answer in one sentence:

Why is the Bank Reconciliation Statement prepared?

Give one word/term/phrase which can substitute the following statement:

The account on which overdraft facility is allowed by bank.

Give one word/term/phrase which can substitute the following statement:

Extract of ledger account of account holder in the books of bank.

Give one word/term/phrase which can substitute the following statement:

Alphanumeric code that facilitates electronic funds transfer in India.

Give one word/term/phrase which can substitute the following statement:

Statement showing the causes of disagreement between balance of Cash Book and Pass Book.

Give one word/term/phrase which can substitute the following statement:

Debit balance in Pass Book.

Give one word/term/phrase which can substitute the following statement:

A form which is filled for depositing cash or cheque into bank.

Give one word/term/phrase which can substitute the following statement:

Left hand side of Pay-in-slip.

Give one word/term/phrase which can substitute the following statement:

Credit balance in Cash Book.

Give one word/term/phrase which can substitute the following statement:

A book maintained by trader to record banking transactions.

Give one word/term/phrase which can substitute the following statement:

Excess of bank deposits over withdrawals by businessman in bank current account.

Do you agree or disagree with the following statement:

The bank column of Cash Book represents bank account.

Do you agree or disagree with the following statement:

Bank statement enables account holder to prepare Bank Reconciliation Statement.

Do you agree or disagree with the following statement:

Cheques issued for payment but not presented to bank appears in Cash Book only.

Do you agree or disagree with the following statement:

Bank Reconciliation Statement is prepared only during the year end.

Do you agree or disagree with the following statement:

Bank Reconciliation Statement is similar to bank statement.

Do you agree or disagree with the following statement:

Bank balance as per Cash Book is always equal to bank balance as per Pass Book.

Do you agree or disagree with the following statement:

Bank advice is sent by the businessman to bank.

Do you agree or disagree with the following statement:

Pay-in-slip is used for depositing cheque into bank.

Do you agree or disagree with the following statement:

Difference in Cash Book balance and Pass Book balance may arise due to errors committed while recording.

Do you agree or disagree with the following statement:

Payment and receipt of cash through internet banking generates automatic proof.

Select the most appropriate alternative from those given and rewrite the following statement:

Overdraft means _______ balance of Cash Book.

Select the most appropriate alternative from those given and rewrite the following statement:

When a cheque is deposited and collected by bank Pass Book is _________.

Select the most appropriate alternative from those given and rewrite the following statement:

A __________ is a summary of financial transactions that take place over a period of time on a bank account.

Select the most appropriate alternative from those given and rewrite the following statement:

Debiting an entry in Cash Book ___________ cash balance.

Select the most appropriate alternative from those given and rewrite the following statement:

Bank Reconciliation Statement is prepared by _________.

Select the most appropriate alternative from those given and rewrite the following statement:

Bank balance as per Pass Book means ___________ balance of Pass Book.

Select the most appropriate alternative from those given and rewrite the following statement:

Bank gives overdraft facility to __________ account holder.

Select the most appropriate alternative from those given and rewrite the following statement:

Debit balance as per Cash Book is also known as ___________ balance.

Select the most appropriate alternative from those given and rewrite the following statement:

When extracts of Cash Book and Pass Book are given for uncommon periods, only ________ items are considered for preparation of Bank Reconciliation Statement.

Select the most appropriate alternative from those given and rewrite the following statement:

When extract of Cash Book and Pass Book are given for common period, only _________ items are considered for preparation of Bank Reconciliation Statement.

Complete the following statement:

Payments credited in Cash Book are __________ in Pass Book.

Complete the following statement:

While preparing Bank Reconciliation Statement only __________ column of Cash Book is considered.

Complete the following statement:

Cheques issued to creditors appear first in ____________ book.

Complete the following statement:

A statement showing the reasons for difference in Cash Book balance and Pass Book balance is known as ___________.

Complete the following statement:

Overcast on receipt side of Pass Book means _________ in Pass Book balance.

Complete the following statement:

Online transfer made to our creditors appear on the _________ side of Cash Book.

Complete the following statement:

Interest on overdraft charged by bank is ____________ in Pass Book.

Complete the following statement:

Normally the Cash Book shows debit balance and Pass Book shows ________ balance.

Complete the following statement:

The form filled for withdrawing cash from bank is known as __________.

Complete the following statement:

A businessman can update his records on receiving __________.

State whether the following statement is True or False with reasons:

Cheques deposited into bank but not yet cleared appears in the Pass Book only.

State whether the following statement is True or False with reasons:

Direct deposit made by debtors into businessman's bank account is recorded on the credit side of Pass Book.

State whether the following statement is True or False with reasons:

Businessman can prepare Bank Reconciliation statement only with Cash Book Balance.

State whether the following statement is True or False with reasons:

When overdraft as per Cash Book is given, bank charges debited in Pass Book only, is to be added.

State whether the following statement is True or False with reasons:

Bank Statement is sent by Bank to businessman.

Draft the following specimen with imaginary Name, Account Number, Amount.

Bank Statement

Draft the following specimen with imaginary Name, Account number, Amount.

Pay-in-slip

Draft the following specimen with imaginary Name, Account number, Amount:

Withdrawal slip

Draft the following specimen with imaginary Name, Account number, Amount:

Bank Advice

Draft the following specimen with imaginary Name, Account number, Amount.

Bank Pass Book

Correct and rewrite the following statement:

The form filled for depositing cash or cheque into the bank is known as Pass Book.

 Correct and rewrite the following statement:

Bank Reconciliation Statement is prepared by Bank.

Correct and rewrite the following statement:

Debit balance as per Pass Book is known as favourable balance.

Correct and rewrite the following statement:

When a cheque is deposited into Bank it is credited to Cashbook.

Correct and rewrite the following statement:

When extracts are given for common period only common items are to be considered.

 Complete the following table:

Following is the extract of the Cash Book (Bank Column only) and passbook. Prepare Bank Reconciliation Statement as of 31st Oct. 2018.

In the books of ____________

In the books of Bank

From the following extract of Cash Book and Pass Book prepare Bank Reconciliation Statement as of 31st March 2019.

In the books of ____________

In the books of Bank

On 31st August 2018 bank passbook of Mr. Ravi showed a credit balance of ₹ 33,600, but Cash Book showed a different balance. On comparing the two books following differences were noticed:

1. Cheques paid into the bank but not credited before 31st Aug 2018 amounted to ₹ 24,500.
2. Direct deposit by the customer through NEFT ₹ 33,000 recorded in the passbook only.
3. Cheques issued on 28th Aug 2018 were presented for payment on 5th Sep. 2018 amounted to ₹ 38,800.
4. A bill receivable for ₹ 15,000 discounted with the bank was dishonored on 30th Aug 2018. Intimation of the same was received only on 3rd Sep 2018.
5. Passbook credit side was overcast ₹ 2,000.
6. Bank debited ₹ 400 for bank charges in the passbook, which was not recorded in Cash Book.

Prepare Bank Reconciliation Statement as of 31st August 2018.

From the following details prepare Bank Reconciliation Statement as of 31st Dec. 2018.

1. Bank overdraft as per Cash Book on 31st Dec. 2018 was ₹ 48,450.

2. Bank charges for SMS alerts ₹ 370 were debited in passbook but not recorded in Cash Book.

3. Interest in overdraft ₹ 2,870 did not appear in Cash Book.

4. A bill for ₹ 12,000 discounted with bank appears in Cash Book at the full amount but the bank has deducted ₹ 200 discounting charges.

5. Cheques issued but not presented for payment before 31st Dec. 2018 amounted to ₹ 32,300.

6. Cheques amounting to ₹ 24,000 were deposited into the bank but only a cheque of ₹ 8,000 was collected by the bank before 31st Dec. 2018.

7. Paid stationary bill ₹ 11,300 by debit card. It was not recorded in Cash Book.

From the following particulars prepare Bank Reconciliation Statement as of 30th June 2019.

1. Credit balance as per pass book ₹ 20,000.
2. A cheque for ₹ 3,500 was issued and paid by the bank, recorded in Pass Book as ₹ 5,300.
3. Cheque deposited ₹ 9,700 collected by the bank was not recorded in Cash Book.
4. Payment side of the Cash Book was undercast by ₹ 100.
5. Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.

Prepare Bank Reconciliation Statement from the following information as of 31st March 2019.

1. Balance as per Cash Book ₹ 10,000.

2. Cheque of ₹ 2,000 issued but not presented to Bank for payment.

3. Our debtor directly deposited ₹ 3,500 to our Bank account by NEFT, not recorded in the Cash Book.

4. Bank paid electricity bill on our behalf ₹ 450 and charged Bank charges ₹ 100.

5. Paid ₹ 1,500 to ABC & company, our supplier by business debit card but recorded in Cash Book as ₹ 150.

6. Bank credited interest on Investment ₹ 500.

7. Cheque of ₹ 885 issued and presented to Bank but wrongly entered in the Pass Book as ₹ 865.

On 31st January 2018 Bank balance as per Cash Book was ₹ 40,000 but Pass Book was showing some other balances following were the causes of the difference.

1. Cheques were issued for ₹ 1,00,000 in January 2018 but cheques of ₹ 50,000 were only presented to the Bank for payment before January 31st, 2018

2. Cheques were sent to the Bank for collection of ₹ 2,00,000 out of which cheques of ₹ 80,000 were only credited by the Bank in January 2018.

3. Following entries were shown in the passbook in January 2018, but no corresponding entries were made in the Cash Book.

(i) Payment of ₹ 6,400 by Bank for Electricity Bill by ECS.

(ii) Interest credited by Bank ₹ 12,000

(iii) Bank debited commission ₹ 1,000 and Bank charges for ₹ 600.

(iv) Direct deposit made by customer ₹ 1,000 by NEFT to our account.

Prepare Bank Reconciliation Statement as of 31st January 2018.

In January 2018, the Pass Book of Mr. Girish Kumbhar showed a bank balance of ₹ 14,000. A comparison of the Cash Book with the Pass Book revealed the following.

1. Cheque deposited but not credited by Bank ₹ 10,000

2. Dividend on shares collected by Bank but not recorded in the Cash Book ₹ 1,000

3. Bank paid Insurance premium as per standing instruction by ECS ₹ 500, no corresponding entry was passed in the Cash Book.

4. Bank debited Commission ₹ 75.

5. A debit of ₹ 900 in respect of cheque dishonored appears in Pass Book only.

6. Cheque of ₹ 1,500 deposited into Bank wrongly recorded twice in the Cash Book.

7. Total cheques of ₹ 20,000 were issued during the month of January 2018, but cheques of ₹ 8,000 only were presented for payment in January 2018.

Prepare Bank Reconciliation Statement as of 31st January 2018.

Form the following details provided by Prasharit enterprises, prepare a Bank Reconciliation Statement as of 31st March 2018.

1. Overdraft as per Cash Book ₹ 28,000

2. Cheque issued of ₹ 2,000 and presented to Bank returned dishonored but the effect of dishonored is not recorded in the Cash Book.

3. Bank debited Bank charges ₹ 150.

4. Bank transferred ₹ 2,500 to the savings account of the proprietor but not recorded in the Cash Book.

5. Cheque issued to the supplier but not presented to Bank before 21st March 2018, ₹ 1,600

6. Cheques of ₹ 3,000 and ₹ 2,000 were deposited into Bank but cheques of ₹ 3,000 were only credited by Bank before 31st March 2018.

7. Out customer directly deposited ₹ 1,500 in our Bank account but wrongly recorded it in the cash column of the Cash Book.

8. Bank debited interest on overdraft ₹ 750.

Prepare Bank Reconciliation Statement as of 31st Dec. 2018

1. Debit balance as per pass book ₹ 16,000

2. Customer directly deposited in our Bank account by NEFT ₹ 8,000.

3. Cheques deposited into Bank but not credited by Bank ₹ 10,500.

4. Pass Book shows a debit entry for Bank commission ₹ 300, not recorded in Cash Book.

5. A Bill of Exchange of ₹ 3,500 was discounted with the Bank in December 2018, returned dishonored in January 2019.

6. As per standing instructions Bank paid the Telephone bill of ₹ 650, not recorded in the Cash Book.

7. Cheque of ₹ 975 deposited into the Bank but wrongly recorded on ₹ 795 in Cash Book.