MCQ Question for Accountancy Class 11 With Answers Chapter 5 Bank Reconciliation Statement

Check the below NCERT MCQ Class 11 Accountancy Chapter 5 Bank Reconciliation Statement with Answers available with PDF free download. MCQ Questions for Class 11 Accountancy with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Bank Reconciliation Statement Class 11 Accountancy MCQs Questions with answers which will help students to revise and get more marks in exams

Bank Reconciliation Statement Class 11 Accountancy MCQs Questions with Answers

Refer below for MCQs Bank Reconciliation Statement with solutions. Solve questions and compare with the answers provided below

Question. The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank.
a) True
b) False
c) Can’t say
d) Partially true

Question. A cheque of `500 deposited into bank but was not recorded in the cash book. How will it be treated for the purpose of bank reconciliation statement?
a)  500 will be deducted from the balance as per pass book.
b)  500 will be deducted from the balance as per cash book.
c)  500 will be added to the balance as per pass book.
d) None of the above

Question. Which of the following would not be a reason for difference between bank balance as per cash book and pass book?
a) Bank charges of ` 200 
b) Cheques deposited but not yet cleared worth ` 9,900
c) Credit purchases of ` 30,000
d) Cheques issued but not yet presented for payment worth ` 3,000

Question. Cheques deposited but not collected will result in:
a) Increasing the balance of pass-book when compared to cash-book.
b) Increasing the balance of cash-book when compared to pass-book.
c) Decrease the balance of pass-book when compared to cash-book.
d) Both (B) and (C) 

Question. When cheques issued by the trader but not yet presented for payment will:
a) Decrease the pass-book, and no affect on the cash-book.
b) No affect on the pass-book, and decrease the cash-book.
c) Both (A) and (B)
d) None of the above. 

Question. A cheque of ` 50,000 is deposited by a firm but it got dishonoured due to insufficient balance in firm’s account. What will be the reason for difference in bank balance in cash book and pass book? 
a) Cheque entry in pass book but not in cash book.
b) Cheque entry in cash book but not in pass book.
c) Cheque entry in both pass book and cash book.
d) None of the above

Question. When the pass book balance is taken as the starting point, items which make the pass book balance ……… than the balance in the cash book must be deducted for the purpose of reconciliation.
a) higher
b) lower
c) equal
d) None of the above

Question. If the overdraft as per the pass book is taken as the starting point, the cheques issued but not presented are to be ……… in the bank reconciliation statement.
a) deducted
b) added
c) ignored
d) None of these

Question. An auto debit transaction made by bank for which approval is given by the company causes difference in bank balance in cash book and pass book because
a) Entry in pass book but not in cash book.
b) Entry in cash book but not in pass book.
c) Entry in both pass book and cash book.
d) None of the above

Question. Amended Cash-Book includes:
a) Errors in Cash-Book
b) Errors in Pass-Book
c) Both (A) & (B)
d) None of the above 

Question. Which of the following is not a reason due to time difference on recording of the transactions while preparing bank reconciliation statement?
a) Unpresented cheques.
b) Uncollected cheques.
c) Payment side of cash book overcast.
d) Direct deposit by Customer into bank. 

Question. Using which of the following statements wouldMsMini have explained the need of bank reconciliation statement to Vinni?  
a) To match the balances as it is generally experienced that when a comparison is made  between the bank balance as shown in the firm’s cash book and the bank statement, the two balances do not tally.
b) To find out the cash balance.
c) To understand liquidity position of the firm.
d) None of the above

Question. Using which of the following statements would Ms Mini have explained the importance of bank reconciliation statement to Vinni?
a) It helps to assure the customer about the correctness of the bank balance shown by the pass book.
b) It helps the management to keep a track of cheques, which have been sent to the bank for collection.
c) Embezzlements are avoided by regular periodic reconciliation.
d) All of the above

Question. If the credit balance as per the pass book is taken as the starting point, then ` 39,000 directly deposited by the customer in the bank account is to be ……… in the bank reconciliation statement.
a) deducted
b) added
c) ignored
d) None of these

Question. If the balance as per the cash book is taken as the starting point, then a wrong entry on the debit side of the pass book for ` 2,000 is to be ……… in the bank reconciliation statement.
a) deducted
b) added
c) ignored
d) None of these

Question. How would have Ms Mini classified the reasons for differences between cash book and bank book balances?
a) Timing differences in recording of the transactions.
b) Errors made by the business or by the bank.
c) Both (a) and (b)
d) Neither (a) nor (b) 

Question. Cheques of ` 15,400 were deposited into bank for collection but not collected by bank will be
a) added to debit balance of cash book.
b) deducted from debit balance of cash book.
c) ignored.
d) None of the above

Question. Difference caused due to bank charges amounting to ` 200, is an example of
a) timing differences in recording of transactions.
b) errors made by the business.
c) errors made by the bank.
d) None of the above

Question. Bank statement is issued by:
a) Bank
b) Auditors
c) Depositor / Customer
d) None of the above  

Question. Cheques issued but not presented in the bank are called:
a) Un-presented cheques
b) Un-credited cheques
c) Un-collected cheques
d) Un-cleared cheques 

Question. Bank paid house tax of ` 350 on his behalf but no information was received from the bank will lead to
a) balance in cash book greater than the balance of pass book.
b) balance in cash book lesser than the balance of pass book.
c) balance in pass book greater than the balance of cash book.
d) None of the above

Question. What is the balance of pass book on 31st March, 2021?
a)  4,33,980
b)  4,50,250
c)  3,72,000
d) None of these 

Question. The differences between the cash-book and bank pass-book is caused by:
a) Timing differences on recording of the transactions.
b) Errors made by the business
c) Errors made by the bank
d) All of the above 

Question. Debit Balance as per Cash book shows:
a) Bank withdrawls are more than deposits.
b) Bank withdrawls are less than deposits
c) Bank deposits are less than withdrawls.
d) All of the above 

Question. While preparing the bank reconciliation statement, bills receivable for ` 700 previously discounted with the bank now dishonoured, will
a) increase the credit balance of cash book.
b) decrease the credit balance of cash book.
c) will not affect the credit balance of cash book.
d) None of the above

Question. While preparing the bank reconciliation statement, cheques drawn but not encashed before 31st December, 2021 for ` 4,000 will be
a) added to credit balance of cash book.
b) deducted from credit balance of cash book.
c) ignored.
d) None of the above

Question. Statement that explains 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 

Question. Bank reconciliation statement is prepared by:
a) Bank
b) Customer’s accountant
c) Auditors
d) None of the above  

Question. Which of the following is not a part of Double Entry System?
a) Cash-book
b) Journal
c) Trial balance
d) Bank reconciliation statement 

Question. Which of the following transaction 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 each book.
d) Cheques paid into bank for collection but not yet credited. 

Question. What will be the balance as per pass book on 31st December, 2021?
a)  6,920
b)  9,270
c)   4,570
d)  13,870

Question. ……… is a statement which is prepared mainly to reconcile the difference between the bank balance as shown by the cash book and pass book.
a) Bank Reconciliation Statement
b) Bank Statement
c) Cash Flow Statement
d) Fund Flow Statement

Question. Why is a bank reconciliation statement prepared?
a) It is generally experienced that when a comparison is made between the bank  balance as shown in the firm’s cash book and the bank statement, the two balances do not tally.
b) To find out the cash balance.
c) To understand short term liabilities.
d) None of the above

Question. Credit balance in cash book reflects
a) overdraft
b) favourable balance
c) nil balance
d) None of these

Question. Credit balance of bank account as per cash book essentially means
a) bank account becomes negative and the businesses in effect have borrowed from the bank.
b) there is high positive balance in bank account.
c) business has paid all its bank loans.
d) None of the above

Question. As per the given case, what could be the possible reason for difference in balance of cash book and pass book?
a) Timing differences in recording of transactions.
b) Errors made by the business.
c) Both (a) and (b)
d) None of the above

Question. Bank reconciliation statement is:
a) Part of Bank statement
b) Memorandum statement
c) Part of journal
d) Ledger account 

Question. Bank Reconciliation statement is prepared in the books of:
a) Bank
b) Guarantor
c) Depositor/ trader
d) None of the above 

Question. On 30th March, 2021, a cheque of ` 1,570 received by her was paid into bank but the same was omitted to be entered in the cash book is an example of
a) timing differences in recording of transactions.
b) errors made by the business.
c) errors made by the bank.
d) None of the above

Question. Which of the following is not a reason due to errors made by the business while preparing bank reconciliation statement?
a) Uncollected cheques.
b) Receipt side of Cash Book overcast
c) Cheques debited in Cash Book but not banked.
d) Bank Charges recorded twice in Cash Book.

 

Question. When Bank Reconciliation Statement is prepared with Credit balance as per Pass Book, the Balance derived will be
a) Credit Balance as per Cash Book
b) Debit Balance as per Pass Book
c) Debit Balance as per Cash Book
d) Both (A) and (C) 

Question. Choose an item that will increase the credit balance of Pass Book but Cash Book Balance will remain unaffected till information is not received
a) Interest allowed by Bank
b) Directly deposited by customer into Bank
c) Rent Collected by Bank on our behalf
d) All of above. 

Question. How will a credit of ` 150 for interest on current account be treated while preparing the bank reconciliation statement?
a) Added to balance of pass book
b) Deducted from balance of pass book
c) Ignored
d) None of the above

Question. What documents of Elegance Ltd does Vinni require for preparation of bank reconciliation statement?
a) Cash book of Elegance Ltd
b) Pass book of Elegance Ltd
c) Both (a) and (b)
d) Neither (a) nor (b)

Question. ‘Debit balance as per pass book and credit balance as per cash book is a favourable balance’. You are required to answer on Vinni’s behalf whether the above statement is
a) True
b) False
c) Can’t say
d) Partially true 

Question. Cheques issued to creditors but not yet presented to the bank for payment amounting to ` 72,000 will be
a) added to debit balance of cash book.
b) deducted from debit balance of cash book.
c) ignored.
d) None of the above

Question. ‘‘She had issued cheques amounting to ` 8,000 out of which cheques amounting to ` 3,200 have so far been presented for payment.’’ What will be the amount deducted from the balance of pass book to reconcile it with the balance of cash book?
a)  8,000
b)  3,200
c)  4,800
d) None of the above

Question. While preparing Bank Reconciliation Statement with the Amended Cash-Book, which of the item is not recorded in amended cash-book?
a) Wrong amount entered in Cash-Book
b) Dividend collected by Bank
c) Cheques issued but not yet presented
d) Interest allowed by Bank. 

Question. Cash Book of a trader shows a debit bank balance of Rs. 6400. While comparing it with Pass-Book, it was found that a cheque of Rs. 7200 issued was recorded on the debit side of Cash-Book. The Pass-Book balance at this point of time would be:
a) Nil
b) Rs. 8000 Cr.
c) Rs. 8000 Dr.
d) None of above

Question. What will be the balance as per cash book on 31st March, 2021?
a) 11,205
b)  15,000
c)  17,725
d) None of the above

Fill In The Blanks

Question. Transaction between an enterprise and its bank is recorded by the Bank in __________. 

Question. Favourable balance as per Pass book is _________ balance.

Question. While preparing Bank Reconciliation Statement with Pass book balance, if the debit side of Cash Book is overcasted by mistake the pass book balance should be ___________.

Question. Cash Book shows a credit balance of Rs 7,500 , if there is no reconciliation the pass book will show __________ balance of Rs __________.

Question. Interest allowed by Bank is recorded on the _________ side of Cash Book in Bank Colum. 

Question. Amount directly deposited by customers into Bank but no information received will increase ________ book balance.

Question. Overdraft as per Cash book is Rs 10,000. Uncollected cheques are Rs 2,500 and unpresented cheques were Rs 3,500. The ________ balance as per pass book is Rs ________. 

Question. Cheque issued but returned due to technical error would _________ the overdraft as per Cash Book while preparing Bank Reconciliation Statement with overdraft as per Cash Book. (increase/decrease) 

True /False

Question. Bank overdraft is Debit balance as Pass Book.

Question. While preparing Bank reconciliation Statement, Pass book is compared with Cash balance of Cash Book.

Question. Unfavourable balance as per Cash book is credit balance.

Question. Interest allowed by Bank is recorded on the Debit side of Cash Book in Bank Column.

Question. Unfavourable balance as per Pass book is credit balance.

Question. Cash Book shows a credit balance of Rs 7,500 , if there is no reconciliation the pass book will show credit balance of Rs 7,500

Question. If Pass book is showing credit balances of Rs 8,000. A cheque deposited in Bank for Rs 2,000 returned dishonoured and the same cheque was not recorded inCash Book earlier. The Cash Book will show debit balance of Rs. 800.

Question. If Bank reconciliation Statement is prepared with debit balance as per cash book, the balance that we arrive at in the end will be Credit balance as per Cash book.

Match the following

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per pass book Rs is given?

1. Interest allowed by the bank Rs 1,000 entered twice on credit side of cash book.	a) 1,000 Plus side
2. Interest allowed by the bank Rs 1,000 entered twice on Debit side of cash book	b) 1,000 minus side
	c) 3,000 minus side
	d) 2,000 plus side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per pass book Rs is given?

1. Bank charges Rs 700 was Debited twice in the Pass book while correctly entered in cash book	a) 700 Plus side
2. Bank charges Rs 700 was Credited twice in the Pass book while correctly entered in cash book	b) 700minus side
	c) 2,100 minus side
	d) 1400 plus side

Question .On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per pass book Rs is given?

1. Cheque of Rs 350 paid into bank , but bank credited Rs 530 by mistake	a) 880 Plus side
2. Cheque of Rs 350 paid into bank , but bank Debited Rs 530 by mistake	b) 880 minus side
	c) 180 Plus side
	d) 180 minus side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per cash book Rs is given?

1. Interest allowed by the bank Rs 1,000 entered twice on credit side of cash book	a) 1,000 Plus side
2. Interest allowed by the bank Rs 1,000 entered twice on Debit side of cash book.	b) 1,000minus side
	c) 3,000 plus side
	d) 2,000 plus side

Question .On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per cash book Rs is given?

1. Bank charges Rs 700 was Debited twice in the Pass book while correctly entered in cash book	a) 700 Plus side
2. Bank charges Rs 700 was Credited twice in the Pass book while correctly entered in cash book	b) 700minus side
	c) 2,100 Plus side
	d) 1400 minus side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Cash book Rs is given?

1. Cheque of Rs 350 paid into bank , but bank credited Rs 530 by mistake	a) 880 Plus side
2. Cheque of Rs 350 paid into bank , but bank Debited Rs 530 by mistake	b) 880 minus side
	c) 180 Plus side
	d) 180 minus side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Cash book Rs is given?

1. Receipt side of cash book was overcast by Rs 2,000.	a) 2,000 Plus side
2. Payment side of cash book was undercast by Rs 2,000.	b) 2,000 minus side
	c) none of the above

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Cash book Rs is given?

1. A bill of exchange of Rs 6,000 was discounted with bank for Rs 5,800 was dishonoured but Rs 6,000 was credited in the cash book	a) 5,800 Plus side
2. A bill of exchange of Rs 6,000 was discounted with bank for Rs 5,800 was dishonoured but Rs 5,800 was credited in the cash book.	b) 6,000 minus side
	c) 200 minus side
	d) None of the above

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