Important Questions for CBSE Class 11 Accountancy Chapter 5 - Bank Reconciliation Statement

A. Very Short Answer Questions – 1 Marks

1. Pass book is the copy of ___________as it appears in ledger of the book.

Ans: Pass book is the copy of customer account as it appears in ledger of the book.

2. When money is withdrawn from bank, the bank _______account of the customer.

Ans: When money is withdrawn from bank, the bank debit Account of the customer.

3. What do you understand by term passbook?

Ans: A passbook is a copy of a bank statement in which the customer's bank record is kept.

4. Reconciliation statement is made to __________the bank balance with cash book balance.

Ans: Reconciliation statement is made to tally the bank balance with cash book balance.

5. The difference in the balance of cash book and bank passbook is caused due to _________.

Ans: The difference in the balance of cash book and bank passbook is caused due to time gap.

B. Short Answer Questions – 2 Marks

1. Prepare the proforma of bank reconciliation statement.

Ans: The proforma of bank reconciliation statement:

2. Bank Reconciliation Statement is prepared by:

A. Bank

B. Creditor

C. Debtor

D. Account holder in bank

Ans: D. Account holder in bank prepares Bank Reconciliation Statement.

3. What do you understand by bank overdraft?

Ans: The term "bank overdraft" refers to withdrawing funds from bank accounts in excess of their limits, resulting in the available amount falling below zero. Interest will be applicable only for the amount actually used from the overdraft account.

4. State true and false:

a. The amount in bank statement should tally with the balance shown in the cash book.

Ans:  The above statement is True. It must tally with each other for a period end.

b. Deposit exceeds the withdrawals it shows a debit balance.

Ans: The above statement is False. When deposits exceed withdrawals, a credit balance is displayed.

C. Short Answer Questions – 3 Marks

1. Why do we need reconciliation?

Ans: When two different statements are made, and the bank statement and the cash book kept by the users are compared, they frequently do not match. We also need to keep track of or create reconciliation statements for the same reason.

2. Explain what difference is caused by errors.

Ans: The following are two primary differences that are produced by bank reconciliation statement errors:

a. Errors made by the business when registering the transaction.

b. Errors committed by the bank during the transaction's recording.

3. How to prepare Bank Reconciliation Statement?

Ans: There are two ways to make a bank reconciliation statement:

a. It is possible to prepare a Bank Reconciliation Statement without modifying the balance in the cash book.

b. After the cash book has been adjusted, a bank reconciliation statement is prepared.

4. How to deal with overdraft?

Ans: When an excess amount is removed from a bank account that exceeds its limit, it is referred to as a bank overdraft. Because businesses occasionally require more funds, they obtain an overdraft from the bank. The bank overdraft is treated as a negative amount on the bank reconciliation statement in this case.

5. What do you understand by correct cash balances?

Ans: Receipts and payments in the books may have errors that must be corrected. To repair these inaccuracies that occur during the recording of revenues and payments, a proper cash balance is computed before the statement is reconciled.

D. Long Answer Questions- 5 Marks

1. How we can deal with favourable balance?

Ans: The steps below will assist you in dealing with a favourable balance:

i. The first item on the statement is the balance in the cash book, which can also be the balance in the passbook.

ii. The top of the statement has Date written on it.

iii.  Amounts directly deposited in a bank account and cheques issued but not present for payment are added.

iv. All bank credits, such as dividends and interest, as well as direct bank deposits, are included.

v. Adjustments for errors are made using the rectification of errors principle.

vi. At this point, the net amount reported in the statement should match the balance in the passbook.

2. When the timing difference is created?

Ans: When a cash book and a bank passbook are compared, a temporal gap occurs, which is referred to as a timing difference. 

The temporal gap is caused by the following factors:

a. Cheques that have been paid into the bank but not yet collected cause a time lapse.

b. A cheque has been issued by the bank, but it has yet to be presented in order to receive payment

c. Amounts deposited straight into a bank account without using a debit card. Being noted in the company's cash book

d. A direct debit (deduction) is made on your behalf by the bank and the customer, which the vast majority of customers are completely unaware of. As a result, a time gap has developed.

3. Prepare a bank reconciliation statement as on July 31, 2018 from the following details of Rachna & Co.

a. Balance as per the cash book Rs. 55,000.

b. Cheques for Rs 5,300 is deposited in the bank but not yet collected by the bank.

c. R.s 200 bank incidental charges debited to Rachna & Co. account, which is not recorded in cash book.

d. A cheque for Rs 20,000 is issued by Rachna & Co. not presented for payment.

Ans: In the books of Rachna & Co.
Bank reconciliation statement
as on July 31, 2018 

4. On March 31, 2018 the bank column of the cash book of Namrata & Co. showed a credit balance of Rs. 1,17,100 (Overdraft). From the following cash and bank statement particulars: Prepare bank reconciliation statement as on March 31, 2018.

a. Payment received from a customer directly by the bank Rs. 28,500 but no entry was made in the cash book.

b. Cheques received and recorded in the cash book but not sent to the bank of collection Rs. 13,400.

c. Cheques issued for Rs. 1,80,400 not presented for payment. Interest of Rs. 8,800 charged by the bank was not entered in the cash book. Prepare bank reconciliation statement

Ans:   In the Books of Namrata & Co
Bank reconciliation statement
    as on March 31, 2018 

5. Prepare bank reconciliation statement for Swarnim for March 31, 2018, from the following particulars Swarnim had on overdraft of Rs. 7,000 as shown by her cash book. Cheques amounting to Rs 1,500 had been paid in by her but were not collected by the bank. She issued cheques of Rs 750 which were not presented to the bank for payment. There was a debit in her passbook of Rs. 50 for interest and Rs. 150 for bank charges. 

Ans:                                         In the Books Swarnim
Bank reconciliation statement
    as on March 31, 2018   

Significance of CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statement Important Questions

Bank Reconciliation Statement is an important part of the Class 11 Accountancy syllabus. This chapter explains what the reconciliation statement is all about and teaches the different concepts related to it. To make this chapter easier to understand, students study the theoretical part well and proceed to solve the exercise questions. Once done, they will need a profound platform to check their preparation level. This platform can be availed by downloading and solving the important questions formulated by the subject experts of Vedantu.

These questions are based on the most recent curriculum and meet Class 11 criteria. Answering these questions will be the most effective approach to assess the degree of preparation and focus on improving it. The holes in preparation may be readily discovered and addressed with knowledge by comparing the responses generated by the sImportant Questions for CBSE Class 11 Accounting Chapter 5 - Bank Reconciliation Statementtudents to the solutions.

Hence, the important questions and answers are an integral part of the study sessions of the students to prepare for CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statement well and score more in the exams.

Benefits of CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statement Important Questions

• The best way to complete preparing the Class 11 Accountancy Chapter 5 is to practice answering questions formulated by the experts. In this way, you can check and find out where you need to study more.

• Find these questions and answers in a single file and access it whenever you want. You can also download the file and add more convenience to your study time.

• Resolve doubts related to the important questions framed by the experts by referring to the solutions. Get the answers to all your queries faster and make good use of your practice time.

• Follow the answering format embedded in the answers to these questions and practice. Develop the same answering skills and learn how to score more in the exams.

Download CBSE Class 11 Accountancy Chapter 5 Bank Reconciliation Statement Important Questions PDF

You can access these questions online or can download the file for future reference. Solve these questions in the way the answers suggest and master the scoring skills for this chapter. Learn how to use the concepts of this chapter and stay ahead of the competition.

Conclusion 

Compilation of important questions for CBSE Class 11 Accountancy Chapter 5 - "Bank Reconciliation Statement" serves as an invaluable resource in mastering the intricacies of financial reconciliation. These questions delve into the crucial process of aligning a company's records with bank statements, offering students a comprehensive understanding of the complexities involved. By addressing topics like outstanding checks, deposits in transit, and reconciling items, these questions equip students with the skills to identify errors and ensure financial accuracy. This resource not only facilitates exam preparation but also imparts practical knowledge applicable to real-world financial management, fostering a deep comprehension of the subject.