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CA Foundation Bank Reconciliation Statement — practice questions

Explore 65 free Bank Reconciliation Statement questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Bank Reconciliation Statement questions and exercises with answers

Showing questions 1–30 of 65.

What is the purpose of preparing a Bank Reconciliation Statement?Read the answer and worked solution →A debit balance in the cash book represents which balance in the pass book?Read the answer and worked solution →Which of the following is NOT a cause of difference between cash book and pass book?Read the answer and worked solution →When BRS starts from cash book balance, cheques issued but not yet presented are:Read the answer and worked solution →Adjusted cash book is mandatory when reconciliation is done at:Read the answer and worked solution →Starting from pass book credit balance, interest credited by the bank is:Read the answer and worked solution →Cash book balance is ₹50,000 debit. Only difference: cheques issued ₹60,000 not presented. Pass book balance is:Read the answer and worked solution →Direct deposit by a customer into the firm's bank account, when starting from cash book balance, is:Read the answer and worked solution →Overcasting of the debit side of cash book by ₹2,000 causes the cash book balance to be:Read the answer and worked solution →Starting from credit balance as per pass book, cheques deposited but not yet collected are:Read the answer and worked solution →BRS prepared with 'Plus & Minus' presentation arrives at:Read the answer and worked solution →In adjusted cash book treatment, which of the following errors will NOT be adjusted in cash book?Read the answer and worked solution →Starting from debit balance as per bank statement, which item is ADDED?Read the answer and worked solution →Bills receivable discounted with bank, charged ₹1,600 on dishonour of ₹80,000 bill. Starting with debit balance in cash book, the deduction to reach pass book is:Read the answer and worked solution →Why is regular bank reconciliation considered an internal control tool?Read the answer and worked solution →Match each bank serviceRead the answer and worked solution →True or false: reconciliationRead the answer and worked solution →Which statement explains the gap between cash and bank balances?Read the answer and worked solution →A cheque issued but not yet presented to the bank for payment is called a(n)Read the answer and worked solution →Cheques deposited by a firm but not yet credited by the bank are known asRead the answer and worked solution →Cash book Rs 20,000 Dr; cheques unpresented Rs 3,000. Passbook balance?Read the answer and worked solution →Passbook Cr Rs 45,000; Rs 5,000 cheques deposited, not yet credited. Cash book?Read the answer and worked solution →Cash book Dr Rs 30,000; bank charges Rs 200 not yet entered. Correct balance?Read the answer and worked solution →Cash book overdraft Rs 12,000; Rs 4,000 cheques unpresented. Passbook shows?Read the answer and worked solution →Cash book Rs 40,000; bank paid premium Rs 2,500, collected dividend Rs 1,000. Adjusted?Read the answer and worked solution →Cash book Rs 36,000 Dr includes a Rs 6,000 cheque dishonoured by the bank, not yet entered. Correct balance?Read the answer and worked solution →Passbook Cr Rs 25,000; unpresented Rs 4,000; uncleared Rs 7,000. Cash book?Read the answer and worked solution →A Rs 7,800 deposit was entered as Rs 8,700 in a cash book showing Rs 50,000 Dr. Correct balance?Read the answer and worked solution →The bank wrongly debited Rs 1,000 to our account; passbook Cr Rs 40,000. Corrected passbook?Read the answer and worked solution →Bank paid a Rs 2,500 cheque missing from the cash book. Cash book Rs 18,000 Dr. New balance?Read the answer and worked solution →

Worked practice questions

What is the purpose of preparing a Bank Reconciliation Statement?

  1. To reconcile cash book and pass book balances
  2. To list all the bank's customers
  3. To compute the interest earned on deposits
  4. To prepare the bank's profit and loss account
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Correct answer: A. To reconcile cash book and pass book balances

1. A Bank Reconciliation Statement (BRS) compares the bank column of the cash book maintained by the entity with the pass book maintained by the bank. 2. The two balances often differ due to timing, transactions recorded only by one party, or errors. 3. The BRS identifies each cause of the difference so that the true bank balance can be ascertained. 4. It is not a tool for listing customers, computing interest, or preparing the bank's own accounts. _Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §4 ¶1_

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A debit balance in the cash book represents which balance in the pass book?

  1. Debit balance (overdraft)
  2. Credit balance (favourable)
  3. Zero balance always
  4. Adjusted nil balance
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Correct answer: B. Credit balance (favourable)

1. The entity treats the bank as a debtor in its own books, so a deposit increases the bank balance on the debit side of the cash book. 2. The bank treats the same entity as a creditor in its books, so a deposit is shown as credit in the pass book. 3. A debit cash book balance therefore corresponds to a credit (favourable) pass book balance, not a debit one. _Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §3 ¶6_

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Which of the following is NOT a cause of difference between cash book and pass book?

  1. Timing of recording entries
  2. Bank charges debited by bank
  3. Cash sales recorded in books
  4. Transactions recorded only by bank
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Correct answer: C. Cash sales recorded in books

1. The three broad categories of causes are timing differences, transactions done only by one party, and errors. 2. Bank charges debited by the bank fall under transactions known only to the bank initially. 3. Cash sales are routine receipts entered the same way in cash book and don't produce a bank-vs-cash-book difference at all. 4. Hence option D is the odd one out. _Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §6 ¶1_

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