Account 1 Marks Question

State two transactions which may be recorded in Cash Book but not in Pass Book.

What does ‘Credit balance as per the Bank Pass Book mean?

State two transactions which may be recorded in Pass Book but not in Cash Book.

Is it correct that Bank Reconciliation Statement is prepared once, i.e., at the end of the year?

What does ‘Debit balance as per the Bank Pass Book mean?

The bank has given a wrong credit of ₹ 10,000. The accountant of the firm recorded it in the books of account by crediting the amount to ‘Miscellaneous Income'. Give your opinion with reason, is he correct in doing so?

Cash Book balance was ₹ 1,790 (Dr.) when compared with the Bank Statement, unpresented cheques were ₹ 1,040 and deposits but not credited were ₹ 820. What was the balance in the Bank Statement?

What does 'Credit balance as per the Cash Book mean?

Is Bank Reconciliation Statement a part of Double Entry System?

What does 'Debit balance as per the Cash Book mean?

State two errors committed in Cash Book which are considered while preparing Bank Reconciliation Statement.

How will direct payment by a customer affect the Pass Book balance?

Ramesh has his account at Punjab National Bank, Delhi. According to his Cash Book, his bank balance on 31st March, 2019 was ₹ 72,950. He sent cheques for ₹ 90,075 to his bank for collection but cheques amounted to ₹ 43,769 were not collected by that date. Out of the cheques issued by him in payment of his debts, cheques for ₹ 29,344 were not presented for payment. Prepare Bank Reconciliation Statement.

State any two reasons of difference between Cash Book and Bank Pass Book balances.

In the Cash Book of a firm, Bank Account showed a credit balance of ₹ 5,000. There were unpresented cheques amounting to ₹ 1,500. The Bank Statement showed bank charges of ₹ 700 not recorded in the Cash Book. What is the balance in the Bank Statement?

The balance at bank in Z's Cash Book on 30th April, 2019 is ₹ 12,460 debit. However, a cheque for ₹ 14,470 received from X and a cheque for ₹ 1,740 paid to Z appear in the Cash Book, but not in the Bank Statement. Bank charges of ₹ 4,500 have not been entered in the Cash Book. What is the balance shown in the Bank Statement on 30th April, 2019?

Why is Bank Reconciliation Statement prepared?

When you proceed to reconcile the Bank Account starting with 'Credit' Cash Book balance. how will you deal with the transactions?

1. Cheques issued but not presented for payment.
2. Cheques deposited but not yet credited.
3. Bank charges charged by the bank not recorded in the Cash Book.
4. Interest allowed by the bank not recorded in the Cash Book.

Vikas's Cash Book showed an overdrawn Cash Book balance of ₹ 20,200 on 31st March, 2019. He received a bank statement showing an overdrawn balance of ₹ 20,310 on 31st March, 2019. The reason for the difference is that bank charged ₹ 310 and allowed interest ₹ 200 has not been recorded in the Cash Book. What entries should Vikas pass to update his Cash Book?

What is the significance of debit and credit balances of Cash Book?

What is Bank Reconciliation Statement?