Download App

Bank Reconciliation Statement — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountBank Reconciliation Statement4 Marks
Question
What is a Bank Reconciliation Statement? Explain briefly any four points regarding need and importance of preparing a Bank Reconciliation Statement.
✓

Answer

Bank Reconciliation Statement is a prepaed by the account holder on a particuar dare to reconcile the bank balance as per cash Book with the balance as per bank statenment or bank pass book showing entries because of which differnces between the two balance exist.Bank Reconciliation statement is prepared because of following reasons:
  1. It brings out the errors if any, committed either in the cash book or in the bank statement or pass book.
  2. Undue delay in the clerance of cheques deposited is know form the reconciliation.
  3. Regular reconciliation discourages embezzlements.
  4. Reconciliation helps in verifying the accuracy of entries recorded inthe cash book.
  5. It shows actual bank blaance.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Bank Reconciliation Statement→Bank Reconciliation Statement — all question types→Account STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Write short notes on the following:
  1. Customised Accounting Software;
  2. Readymade Accounting Software.
→
Give four points of distinction between Trading Account & Profit and Loss Account.
→
Record the following transactions in Double Columns Cash Book and balance the book on 31st March, 2019:
2019
 
₹
March 1
Cash in Hand
12,750
 
Cash at Bank
72,400
March 4
Received from Asha cash ₹ 1,200 and a cheque for ₹ 3,200, allowed discount ₹ 400
 
March 7
Paid salary to staff by cheque
25,600
March 9
Withdrawn cash from bank for office use
21,900
March 12
Interest paid by bank on bank balance
1,200
March 16
Purchased furniture in cash
16,500
March 21
Paid Mohan & Co. by cheque, discount received ₹ 100
10,900
March 24
Proprietor withdrew from office cash for his personal use
11,600
March 29
Sold goods to Manoj for cash
14,800
March 31
Deposited office cash into bank
21,200
→
What do you understand by saving a report as snapshot?
→
Pass Journal entries rectifying the following errors:
  1. A cheque for ₹ 10,000 was received from Ranjan on which ₹ 200 Cash Discount was allowed. The cheque was not honoured on due date and the amount of discount was credited to Discount Received Account.
  2. ₹ 2,000 paid as wages for machinery installation was debited to Wages Account.
  3. ₹ 5,000 received from Rakesh were credited to his Personal Account. The amount had been written off as bad debts earlier.
  4. Repair bill of machinery was recorded as ₹ 100 against the bill amount of ₹ 1,000.
→
Rectify the following errors by passing Journal entries:
  1. A sum of ₹ 470 received from Ganga was posted to her debit as ₹ 740.
  2. A debit balance of ₹ 550 in the personal account of Mr. John was undercast.
  3. Bills Receivable from Brown for ₹ 3,000 posted to the credit of Bills Payable Account and credited to Brown’s Account.
  4. Goods returned by Mridul ₹ 225 have been entered in the Returns Outward Book.
→
With the help of an example, briefly state the meaning of parameter queries.
→
Discuss the need of preparing a balance sheet.
→
From the following information, prepare Trading Account for the year ended $31^{st}$ March, $2019$:
Adjusted Purchases ₹ $6,60,000$; Sales ₹ $7,44,000$; Closing Stock ₹ $50,400$; Freight and Carriage Inwards ₹ $3,600$; Wages ₹ $6,000$; Freight and Cartage Outwards ₹ $2,000$.
→
Write a note on types of Assets with one example of each.
→