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Multiple choice commercial studies cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance bank overdraft meaning and bank reconciliation statement

When the balance as per Cash Book is the starting point, direct deposit by customer is_______________.

  1. Added

  2. Subtracted

  3. Not required to be adjusted

  4. Neither of the two
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A direct deposit is a deposit which is directly made into the bank account without recording it in the cash book. So the balance as per pass book increases as compared to the balance as per cash book. Thus, when balance as per cash book is the starting point, a direct deposit is added to arrive at the balance as per pass book.

Multiple choice commercial studies cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance bank overdraft meaning and bank reconciliation statement

A Bank Reconciliation Statement is prepared with the help of _____________.

  1. Cash Book

  2. Pass Book

  3. Either Cash Book or Pass Book

  4. Neither Cash Book or Pass Book
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A bank reconciliation statement is prepared to reconcile the differences between the balances as per cash book (bank balance) and pass book (bank statement). It is prepared by taking any of the two balances as the base, accommodating all the causes of differences and finally arriving at the other balance. Thus it is prepared with the help of either cash book or pass book depending on whose balance we take as the base.