Class 11 Accountancy NCERT Solutions Chapter 5 Bank Reconciliation Statement
FAQs on NCERT Solutions for Class 11 Accountancy Chapter 5 - Bank Reconciliation Statement
1. A mismatch of accounts in the passbook and cashbook can be a result of timing differences. Elaborate.
Suppose a cheque is issued by the firm to a customer. Immediately after issuing a cheque, an entry is made on the debit side of the cash book maintained by the firm. If the customer decides to present the cheque at a later point in time, or if due to some technical inconvenience, the cheque is not cleared on the very same day, the bank is not informed about the issuance. Only after clearing the cheque, an entry is made in the passbooks. This could also happen the other way around. A customer may give a cheque to the bank directly, which is recorded in the passbook immediately. The firm does make this entry until an indication is received.
2. What are the possible errors while preparing entries in a cash book or passbook? What is an overdraft?
BRS stands for Bank Reconciliation Statement. As the name suggests, it is a statement and not accounts. It is made to make sure that records from two different places are in agreement. In other words, it ensures that the money spent matches what is in the record.
Errors: The firm as well as the bank could miss out on a transaction, or make a wrong entry or wrong totalling. Thus, this error could also possibly lead to a mismatch in the accounts. An unfavourable balance or an overdraft occurs when the amount of money credited from a bank account is greater than the amount debited from it. Thus, the bank account becomes negative. While preparing a BRS, it is treated as a negative figure.
3. What is a bank reconciliation statement for Class 11?
When an individual firm or company runs a business they need to keep records for their monetary transactions as well in a cash book and the bank in turn also maintains a record for the same in a passbook. During the end of a financial year when the transactions are tallied there might be discrepancies in these two records, which is then written as another form of statement called the bank reconciliation statement. This has the details for all the missing records of transactions made. To learn more about Class 11 Accountancy Chapter 5 visit Vedantu website and the app.
4. How do I write a bank reconciliation for Class 11?
A bank reconciliation statement is written while the cashbook and passbooks are tallied to see if all the credit and debits made a match with each other so that the balance sheet comes all correct at the end. Whichever transaction goes missing from any one of the records of the bank or the firm is immediately noted down in another record bank in the form of a momentary statement and then at the end, it is added and subtracted accordingly to match with the actual transactions and justify the finance for the year.
5. Why is a bank reconciliation statement needed?
When firms handle a lot of business transactions, there can be faults and disputes which might lead to missing information in the record books. This will create chaos in the end when the firm will fail to match the balance sheets. This is why the bank reconciliation statement is so useful. This statement will help to point out the gaps and calculate them and then finally fill the gaps accordingly. The actual calculations can be found out which is very important for a firm or company in order to keep track of the fluidity of cash. Read more about the chapter on Vedantu website (vedantu.com).
6. What is meant by a bank overdraft Class 11?
There comes situations in a business when the balance of the firm goes below the minimum which means it will fail to carry on with the venture if not provided with enough capital at that time. To solve this problem, the bank automatically transfers cash to the account of the firm so that the venture continues and no transaction is stopped due to the monetary limitation. This is called bank overdraft. This is provided by the bank with some amount of interest to the firm.
7. Where can I find the best possible answers for the Class 5 Chapter 11 Accountancy Subject?
CBSE Class 11 Accountancy Chapter 5 is very well explained in the form of notes, recaps, important questions, solved exercise questions, etc on the web page of Vedantu. Here you will find the best possible answers which will help you to score good marks in your Class 11 Accountancy paper. Apart from that, if you face any difficulty in understanding the concepts of bank reconciliation then you will find easy to comprehend explanations here as well, which is just a click away. You can also download the NCERT Solutions free of cost to study offline.