

Important BRS Questions and Answers for Exam Practice
A Bank Reconciliation Statement (BRS) is an important accounting tool that helps match the balances in the cash book with the bank passbook. It is essential for Class 11–12, competitive exams, and for practical business accounting. Understanding the concepts and errors in BRS ensures accuracy and clarity in financial records for students and professionals.
Term | Meaning | Effect on BRS |
---|---|---|
Unpresented Cheques | Cheques issued but not yet cleared by the bank | Deduct from Cash Book balance when starting from Passbook |
Uncredited Cheques | Cheques deposited but not yet credited by the bank | Add to Cash Book balance when starting from Passbook |
Bank Charges | Fees debited by the bank | Deduct from Cash Book balance |
Direct Deposits | Amount deposited directly in the bank by customers | Add to Cash Book balance |
Bank Reconciliation Statement: Concept and Importance
The bank reconciliation statement is a summary that explains the differences between the balances in the cash book and the passbook. These differences occur due to transactions like unpresented cheques, bank charges, or direct deposits. BRS ensures the accuracy of both records and helps prevent errors or frauds. For exam preparation, understanding BRS is crucial as it forms the basis of many multiple-choice questions.
MCQ On Bank Reconciliation Statement
Practising MCQs on bank reconciliation statement builds confidence for exams and practical accounting. Here are some common MCQs often asked in school and competitive exams:
- The cash book debit balance is equivalent to what in the passbook?
- Who prepares the bank reconciliation statement?
- What are unpresented cheques?
- Is BRS part of the double-entry system?
- How are direct deposits handled in the BRS process?
MCQ | Answer |
---|---|
1. The Cash Book debit balance is equivalent to? | Credit Balance as per Passbook |
2. Who prepares the bank reconciliation statement? | Account Holder or Accountant |
3. Bank Reconciliation Statement is a part of? | Not a part of the double-entry system |
4. Unpresented cheques are? | Cheques issued but not yet presented to the bank |
5. If the bank credits your account by mistake, you should? | Do not add to the cash book balance |
Common Errors in Bank Reconciliation Statement
Bank reconciliation involves identifying and correcting various errors. Here are typical mistakes and their corrections:
Error Type | Correction |
---|---|
Cheques issued but not presented | Deduct from Cash Book if starting with Passbook balance |
Direct deposit not entered in Cash Book | Add to Cash Book balance |
Bank charges not recorded in Cash Book | Deduct from Cash Book balance |
Interest credited by bank but not in Cash Book | Add to Cash Book balance |
Steps in Preparing Bank Reconciliation Statement
Follow these steps to prepare a bank reconciliation statement for exams or business:
- Gather the latest bank statement and cash book.
- Match each transaction in both records.
- Adjust for unpresented and uncredited cheques.
- Account for direct deposits and bank charges.
- Calculate the adjusted/final balance to ensure both match.
Practical Applications and Examples
Bank Reconciliation Statements are used monthly or periodically in all businesses. They help spot errors, prevent fraud, and maintain accurate records. In exams or real business settings, you may be given a set of cash book and passbook transactions and asked to reconcile the balances.
Tips for Solving BRS MCQs
- Understand whether the question starts with cash book or passbook balance.
- Identify errors: bank’s or business’s responsibility?
- Always adjust for direct deposits and charges.
- Practise with solved questions for clarity.
Related Topics and Further Learning
To master BRS, it also helps to study related topics such as cash book, ledger accounts, and rectification of errors. Vedantu also provides stepwise explanations in Preparation of BRS and TS Grewal Solutions for Class 11 Accountancy.
At Vedantu, we simplify Commerce topics like the bank reconciliation statement so students can excel in their exams and improve their business understanding. Whether you need MCQs for quick revision or in-depth solutions, practising BRS ensures exam success and real-life accounting skills.
In summary, the bank reconciliation statement is an essential chapter for exams and real business. It helps in identifying errors, understanding financial statements, and maintaining accurate cash flows. Master the topic with regular practice, clear concepts, and revision to score well and apply knowledge confidently.
FAQs on MCQ on Bank Reconciliation Statement with Solutions
1. What is a Bank Reconciliation Statement MCQ?
A Bank Reconciliation Statement (BRS) MCQ is a multiple-choice question testing your understanding of how to reconcile differences between your cash book and bank passbook balances. These MCQs often involve practical scenarios with common errors like unpresented cheques, bank charges, and other discrepancies. Solving them helps you master the BRS preparation process for exams.
2. Who prepares the bank reconciliation statement?
The bank reconciliation statement (BRS) is typically prepared by an individual or department within an organization responsible for managing its finances. This could be an accountant, bookkeeper, or a dedicated finance team member. The person preparing the BRS needs to have a good understanding of accounting principles and the reconciliation process to identify and correct discrepancies between the cash book and passbook.
3. Why do cash book and passbook show different balances?
Differences between cash book and passbook balances arise from transactions recorded in one but not the other. Common reasons include:
• Unpresented cheques: Cheques issued but not yet cashed.
• Deposits in transit: Deposits made but not yet reflected in the passbook.
• Bank charges: Fees deducted by the bank.
• Direct debits/credits: Transactions directly debited or credited to the account.
• Errors: Mistakes in recording transactions in either the cash book or passbook.
4. Is the bank reconciliation statement part of the double-entry system?
No, the bank reconciliation statement (BRS) is not directly part of the double-entry bookkeeping system. It's a separate process used to identify and explain the differences between the cash book balance and the bank statement balance. The BRS helps ensure accuracy but doesn't involve creating new journal entries within the double-entry system itself. It's a tool for verification and error detection.
5. What are outstanding cheques in BRS MCQs?
In BRS MCQs, outstanding cheques refer to cheques that have been issued and recorded in the cash book but haven't yet been presented to the bank for payment and therefore don't appear on the bank statement. These need to be deducted from the bank statement balance during the reconciliation process to arrive at the correct adjusted balance. Understanding this is crucial for solving many BRS MCQs.
6. Can I get BRS MCQs with solutions in PDF format?
Yes, many resources offer BRS MCQs with solutions in PDF format. These PDFs are valuable for exam preparation, allowing you to practice bank reconciliation statement questions offline and check your answers. Look for reputable educational websites or textbooks offering downloadable practice materials for Class 11 and Class 12 Accountancy.
7. What is a bank reconciliation statement MCQ?
Bank Reconciliation Statement (BRS) MCQs are multiple-choice questions testing your understanding of reconciling differences between cash book and passbook balances, often including practical errors, corrections, and the BRS preparation process. Practice these MCQs to reinforce BRS concepts for exams.
8. What if cash book and passbook don’t match?
If your cash book and passbook balances don't match, it indicates discrepancies requiring reconciliation using a Bank Reconciliation Statement (BRS). This involves systematically identifying and correcting errors or accounting for timing differences in transactions, such as unpresented cheques, deposits in transit, bank charges, and other adjustments.
9. Why is BRS important?
A Bank Reconciliation Statement (BRS) is crucial for several reasons:
• Error Detection: Identifies mistakes in recording transactions.
• Fraud Prevention: Helps detect unauthorized transactions.
• Accurate Financial Reporting: Ensures correct financial statements.
• Improved Cash Management: Provides a clear picture of cash flow.
• Compliance: Meets auditing and regulatory requirements.
10. What are some common errors found in bank reconciliation statements?
Common errors in bank reconciliation statements include:
• Incorrect recording of bank charges or interest.
• Omission of unpresented cheques or deposits in transit.
• Incorrect calculation of the adjusted balance.
• Misinterpretation of debit and credit entries.
• Errors in the initial cash book or bank statement entries.

















