Tag: objectives and importance of bank reconciliation statement
Questions Related to objectives and importance of bank reconciliation statement
A bank reconciliation statement is prepared with the balance of __________.
A bank reconciliation statement is prepared by_________.
When a banker collects the bills and credits the amount, pass book overdraft shows ______ balance than before.
Passbook is the statement of account of the customer maintained by the bank.
Favourable bank balance as per the cash book will be less than the bank pass book balance when there are unpresented cheques for payment.
Cheques deposited but not collected will result in increasing the balance of the cash book when compared to pass book.
A business firm periodically prepares a bank reconciliation statement to reconcile the bank balance as per the cash book with the pass book as these two show different balances for various reasons.
When payments made by the bank as per the standing instructions of the customer, the balance in the pass book will be more when compared to the cash book.
Direct collections received by the bank on behalf of the customers would increase the balance as per the bank pass book when compared to the balance as per the cash book.
Differences caused by errors are ___________.