Bank Reconciliation Statement - Class XI

True. 

A bank reconciliation statement is prepared by the account holder (the business), not the bank, to reconcile their own records with the bank statement.

When a discounted bill of exchange is dishonored, the bank deducts the amount from the account. If starting with the Cash Book balance, this amount must be subtracted to match the bank's records.

The cash book serves the purpose of both the cash account and the bank account and shows he balance at the end of the period. Once the cash book is balance, the details with the records of the firm's bank transactions as recorded  by the bank are checked. 

The booklet or a statement used to record the banking transactions is known as pass book or bank statement. It is prepared by the bank. It shows all the transactions of a customer with the bank in the bank's books.

A bank maintains records of thousands of customers in its ledgers.

False. Bank reconciliation statement is prepared by the business firm/ company accountant/ book keeper/ customer amd not the bank as it is the responsibility of the business to present a true and fair picture of its books of accounts to its various stakeholders.

True. Bank reconciliation statement is generally prepared when the bank statement is received, which happens at the end of every month. So it is usually prepared at the end of every month by the company accountant/ book keeper.

False. Bank reconciliation statement is prepared periodically. It is generally prepared when the bank statement is received by the business which happens at the end of every month. So, bank reconciliation statement is prepared at the end of every month by the business.

False. Bank reconciliation statement is prepared to reconcile the balances as per cash book (bank column) and pass book (bank statement) by identifying the causes of differences between the two. It, in no way detects the errors that take place in accounting while book keeping.

A bank reconciliation statement is generally prepared by the company accountant or book keeper to reconcile the closing balance of cash book (bank column) in own records  as per the bank's records (pass book). Thus, it is prepared by the account holders or customers i.e business and not the bankers. It is normally prepared at the end of the month.

The bank is a keeper of our money and safeguards it also paying an interest.

Depending upon the type of requirement a customer can open any of the given accounts with the bank.

A bank is an institution which deals in money. It facilitates the transactions of different types of business both small and large scale and even on an individual level. Even though banks deal in money still they are not empowered to issues currency. In India only the Reserve Bank of India (RBI) has the power to issue currency.

The bank is a keeper of our money and safeguards it also paying an interest.

Whenever money is deposited in bank  or withdrawn from bank it is recorded in two places.

A Bank Reconciliation Statement is an independent statement prepared to reconcile the balance between the bank column of cash book and pass book.

Whenever money is deposited in bank  or withdrawn from bank it is recorded in two places.

Whenever money is deposited in bank  or withdrawn from bank it is recorded in two places.

Whenever money is deposited in bank  or withdrawn from bank it is recorded in two places.

Bank Reconciliation is a business exercise and not a compulsion by any act or rule. This reconciliation helps in knowing where is the business money going and how much is  in form of liquid cash and lying in the bank. If the balances does not tally there are possibilities of fraud or error.

False. Bank reconciliation statement is prepared to Reconcile the balances as per cash book (bank column) and pass book (bank statement) by identifying the causes of difference between the two for a particular period. it is prepared with the objective of reconciliation and not to arrive at the bank balance.

Bank statement provided by the bank shows the balance as on date.Hence, bank column of cash book might not reflect all the entries as shown in bank pass book since some entries only reflect in bank pass book.Adjustments are made in business's cash book to arrive at the final balance avaialble with the business.

• Collection charges are directly charged by the bank for providing specified services and this amount is charged  completely on the discretion of the bank. This amount can be recorded in the books of accounts only when we have the bank statement and not before that.
• In case of  date of declaration of dividend and the date of actual receipt of it there would a difference so we need the bank statement for the actual  date of receipt.
• Pre-scheduled payments are the expense bills to be paid or subscription to be paid on timely intervals. They are scheduled as per the account holders and are therefore executed by the bank automatically. To record such transactions bank statement/pass book is necessary.

True. Bank reconciliation statement is prepared to reconcile the differences between the balances as per cash book and pass book. If the two balances match, then there is no need for a bank reconciliation statement.

True. Bank reconciliation statement is prepared to reconcile the balances as per cash book (bank column) and passbook (bank statement) by identifying the causes of differences between the two for a particular period. The bank reconciliation statement is prepared with the objective of reconciling the balances and not arriving at the bank balance.

A bank is a financial institution that deals in money by lending money and accepting deposits. 

Bank statement provides balance as on date. But to determine the exact balance available with the business, it is required for business to prepare bank reconciliation statement while making adjustments in the bank column of cash book.

A bank reconciliation statement is a vital statement for the business.

Overdraft facility means that the customer is allowed to withdraw money from his bank account even when the balance is zero. However, this does not affect the way in which the cheques deposited but not cleared are recorded in the cash book. Cheques deposited but not cleared are debited in the cash book (bank column). Thus, even in the case of an enterprise having overdraft facility, the bank reconciliation statement treats all the cheques deposited but not cleared as added.

Base of a reconciliation statement can either be as per cash book or bank pass book since balances of both the books are considered to know the final balance available with the business.

A bank reconciliation statement is prepared using cash book which is prepared by the business and passbook which is prepared by the bank. When the balances of these two books are compared and reconciled, the credibility of the balances is established. Since the business prepares the cash book and the bank reconciliation statement and the passbook is prepared by the bank, the business is able to establish the credibility of the balance as per pass book which is not prepared by the business, on the basis of cash book while preparing bank reconciliation statement, which are prepared by it.

A bank reconciliation statement is a statement prepared by the business to reconcile the differences in balance as per bank column in the cash book and bank balances as per pass book (bank statement). The passbook is a copy of the customer's account with the bank and it is prepared by the bank. On the other hand, cash book is prepared by the business and bank column of cash book shows all those transactions of the business which are carried out through the bank account. So it is often, that there are differences between these two balances as they are prepared by different entities with different viewpoints which is why bank reconciliation statement is required to Reconcile these differences.

In case of deposits in transit the entry for would have been entered in the cash book due to which the cash book balance would be higher than the pass book balance.

A bank reconciliation statement is the specific document used to explain the differences between the cash book balance and the bank passbook balance on a specific date.

A bank reconciliation statement is prepared to show reconciliation of balances as per cash book and passbook by identifying the causes of differences between the two. It is prepared by the book keeper/ company accountant/ businessman/ customer as it is the responsibility of the business to present a true and fair picture of its books of accounts to its various stakeholders.

A bank reconciliation statement is a statement prepared by the account holder to reconcile the differences arising between the bank balances as per pass book and the cash book.

A bank reconciliation statement is prepared by the one who holds an account in the bank. A bank will never prepare a bank reconciliation statement but only provides with the summary of transactions undertaken by the account holder during a given period in form of a bank pass book.

Bank reconciliation statement is prepared by p'ship firms, sole traders and companies i.e ones which have businesses.

The purpose of a bank reconciliation statement is to reconcile the bank column of the cash book with the bank passbook (or bank statement) provided by the bank.

Bank reconciliation statement is prepared to reconcile the balances as per cash book (bank balance) and pass book (bank statement) by identifying the causes of differences between the two. So, in other words, any undue delay in the clearance of the cheque will be shown. If any fraud is happening, it will show up when the balances would not match. And, it will also help us arrive at the actual position of the bank balance.