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CA Foundation Bank Reconciliation Statement — practice questions — page 2

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 31–60 of 65.

Which item needs no entry in the cash book when reconciling?Read the answer and worked solution →Which pair are both timing differences in a reconciliation?Read the answer and worked solution →A debit balance in the passbook means the account holder hasRead the answer and worked solution →From the bank's view, a customer's positive deposit balance is aRead the answer and worked solution →A receipt on the debit side of the cash book appears in the bank statement as aRead the answer and worked solution →Unrecorded bank charges mean the cash book balance isRead the answer and worked solution →Interest credited by the bank but not yet recorded makes the cash bookRead the answer and worked solution →An unknown dishonour of a deposited cheque leaves the cash bookRead the answer and worked solution →A cheque refused by the drawee bank for lack of funds is said to beRead the answer and worked solution →A dishonoured cheque is colloquially called aRead the answer and worked solution →A common reason for a cheque to be dishonoured isRead the answer and worked solution →A cheque presented after its validity period is called aRead the answer and worked solution →A cheque carrying a future date is called aRead the answer and worked solution →A stale cheque in the books is typicallyRead the answer and worked solution →How often should a bank reconciliation be carried out?Read the answer and worked solution →A bank reconciliation compares the passbook with theRead the answer and worked solution →Bank reconciliation works as an internal control by helping detectRead the answer and worked solution →A bank statement is prepared byRead the answer and worked solution →The start date of a bank statement period is usuallyRead the answer and worked solution →Electronic bank statements are commonly generated in which format?Read the answer and worked solution →Who is the drawer of a cheque?Read the answer and worked solution →A cheque is a type ofRead the answer and worked solution →A crossed cheque must be paidRead the answer and worked solution →Which 1881 Indian Act gave cheques and bills their legal framework?Read the answer and worked solution →Under the cheque truncation system in India, cheques areRead the answer and worked solution →Sequential cheque numbers help banks mainly toRead the answer and worked solution →The detachable record kept in the chequebook after a cheque is written is theRead the answer and worked solution →MICR information on cheques mainly supportsRead the answer and worked solution →Issuing a cheque without adequate funds and depositing cover later is calledRead the answer and worked solution →The purpose of account reconciliation under GAAP is to provideRead the answer and worked solution →

Worked practice questions

Which item needs no entry in the cash book when reconciling?

  1. Bank charges debited by bank
  2. Cheque issued but not presented
  3. Interest credited by the bank
  4. Direct debit for a premium
Show answer and solution

Correct answer: B. Cheque issued but not presented

An unpresented cheque is already in the cash book and is only a timing difference that clears later.

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Which pair are both timing differences in a reconciliation?

  1. Bank charges and interest
  2. Direct debits and dividends
  3. Unpresented and uncleared cheques
  4. Dishonour and bank errors
Show answer and solution

Correct answer: C. Unpresented and uncleared cheques

Both unpresented and uncleared cheques will reverse on their own once the bank processes them.

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A debit balance in the passbook means the account holder has

  1. Idle funds in savings
  2. An overdraft with the bank
  3. Uncollected cheques
  4. Unclaimed dividends
Show answer and solution

Correct answer: B. An overdraft with the bank

The statement shows the bank's view, where money the bank is owed appears as a debit, which is an overdraft.

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How to practise

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