Tag: understand the concept of bank reconciliation statemen

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Multiple choice elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

A bank reconciliation statement is prepared to find out the causes of the difference between:

  1. The balance as shown by the cash column of the cash book with the balance shown by its bank column.

  2. The balance as shown by the cash column of the cash book with the balance shown by the pass book.

  3. The balance shown by the bank column of the cash book with the balance shown by the pass book.

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

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.

Multiple choice elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

Which of the following are the salient features of bank reconciliation statement?

  1. Any undue delay in the clearance of cheque will be shown up by the reconciliation

  2. Reconciliation statement will help in finding the person doing'any fraud

  3. <span>It helps in finding out the actual position of the bank balance</span>

  4. <span>(a), (b) and (c)&nbsp;</span>
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

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.

So (a), (b) and (c).