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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Tiwari & Sons find that the bank balance shown by their Cash Book on 31st March, 2019 is Rs. 40,500 (credit) but the Pass Book shows a differennce due to the following reasons: (i) A cheque for Rs. 5,000 drawn in favour of Manohar has not yet been presente4d for payment. (ii) A post-dated cheque for Rs. 900 has been debited in the bank column of the Cash Book but it could not have been presented in any case. (iii) Cheques totalling Rs. 10,200 deposited with the bank not yet been collected and a cheque for Rs. 4,000 has been disshonoued. (iv) A bill for Rs. 10,000 was retired by the Bank under a rebate of Rs. 150 but the full amount of the bill was credited in the bank column as per Pass Book. |
| Answer» Correct Answer - Overdraft or Debit Balance as per Pass Book -Rs. 50,450 | |
| 2. |
Ramessh has his account at Punjab National Bank, Delhi. According to his Cash Book, his bank balance ofn 31st March, 2019 was Rs. 72,950. He sent cheques for Rs. 90,075 to his bank for collection but cheques amounted to Rs. 43,769 were not collected by that date. Out of the cheques issued by him in payment of his date, cheques for Rs. 29,344 were not presented for payment. Prepare Bank Reconciliation Statement |
| Answer» Correct Answer - Balance as per Pass Book - Rs. 58,525 | |
| 3. |
Kumar find that the bank balance shown by his cash book on December 31, 2017 is 90,600 (Credit) but the passbook shows a difference due to the following reason: A cheque (post dated) for 1,000 has been debited in the bank column of the cash book but not presented for payment. Also, a cheque for 8,000 drawn in favour of Manohar has not yet been presented for payment. Cheques totaling 1,500 deposited in the bank have not yet been collected and cheque for 5,000 has been dishonoured. |
| Answer» overdraft as per passbook 90100 | |
| 4. |
On 31st March, 2019 Cash Book of Mahesh showed debit bank balance of Rs. 75,000. When compared with the Bank Statement, following facts wre discovered. On 30th March, two cheques of Rs. 5,000 and Rs. 7,000 were deposited uin the bank but werr not realised till date. On 28th March, three cheques of Rs. 6,000 ,Rs. 8,000 and Rs. 12,000 were issued but none of these were presented to the bank fro payment. On 31st March, bank credited Rs. 1,250 as interest charges but this was not recorded in the Cash Book . Similarly, the bank had charged Rs. 150 as bank charges but his was not recorded in the Cash Book. Bank paid insurance premium of Rs. 5,000 but it was recorded as Rs. 500 in Cash Book Prepare Bank Reconciliation Statement on 31t March 2019 |
| Answer» Correct Answer - Balance as per Pass Book - Rs. 85,600 | |
| 5. |
On 30th June, 2019 bank clumn of the Cash Book Showed balance of Rs. 12,000 but the Pass Book showed a different balance dut to the following reasons: (i) cheques paid into the bank Rs. 8,000 but out of these only cheques of Rs. 6,500 credited by bankers. (ii) The receipts column of the Cash Book undercast by Rs. 200 (iii) On 29th June, a custmoer deposited Rs. 3,000 directly in the Bank Account but it was entered in the Pass Book only. (iv) Cheques of Rs. 9,200 were issued of which Rs. 2,200 were presented for payment on 15th July, (v) Pass Book shows a credit of Rs. 330 as intrested and a debit or Rs. 60 bank charges. Prepare Bank Reconciliation Statement as on 30th June, 2019 |
| Answer» Correct Answer - Balance as per Pass Book - Rs. 16,170 | |
| 6. |
Cash Book shows a balance of Rs. 12,500. On comparing the Cash Book with the Pass Book, following discrepanices were noted: `{:(,,Rs.),((i), "Cheques issued but not yet presented for payment.","6,000"),((ii),"Cheques depostied in the bank but not collected.", "9,000"),((iii),"Bank paid insurance premium." , "5,000"),((iv),"Bank charges.","300"),((v),"Directly deposited by customer.","8,000"),((vi),"Cash discount allowed of Rs. 200 was recorded on the debit side of the Bank column.", ""):}` |
| Answer» Correct Answer - Balance as per Pass Book - Rs. 14,000 | |
| 7. |
Bank balance of 40,000 showed by the cash book of Atul on December 31, 2016. It was found that three cheques of 2,000, 5,000 and 8,000 deposited during the month of December were not credited in the passbook till January 02, 2017. Two cheques of 7,000 and 8,000 issued on December 28, were not presented for payment till January 03, 2017. In addition to it bank had credited Atul for 325 as interest and had debited him with 50 as bank charges for which there were no corresponding entries in the cash book. Prepare a bank reconciliation statement as on December 31, 2016. |
| Answer» Balance as per passbook 40,275 | |
| 8. |
On comparing the cash book with passbook of Naman it is found that on March 31, 2014, bank balance of 40,960 showed by the cash book differs from the bank balance with regard to the following: (a) Bank charges 100 on March 31, 2017, are not entered in the cash book. (b) On March 21, 2017, a debtor paid 2,000 into the company’s bank in settlement of his account, but no entry was made in the cash book of the company in respect of this. (c) Cheques totaling 12,980 were issued by the company and duly recorded in the cash book before March 31, 2017, but had not been presented at the bank for payment until after that date. (d) A bill for 6,900 discounted with the bank is entered in the cash book without recording the discount charge of 800. (e)3,520 is entered in the cash book as paid into bank on March 31st, 2017, but not credited by the bank until the following day. (f) No entry has been made in the cash book to record the dishon or on March 15, 2017 of a cheque for 650 received from Bhanu. Prepare a reconciliation statement as on March 31, 201. |
| Answer» Balance as per passbook 50,870 | |
| 9. |
The cash book shows a bank balance of 7,800. On comparing the cash book with passbook the following discrepancies were noted: (a) Cheque deposited in bank but not credited 3,000 (b) Cheque issued but not yet present for payment 1,500 ( c) Insurance premium paid by the bank 2,000 (d) Bank interest credit by the bank 400 (e) Bank charges 100 (d) Directly deposited by a customer 4,000 |
| Answer» Balance as per passbook 8600 | |
| 10. |
Prepare bank reconciliation statement as on December 31, 2017. This day the passbook of Mr. Himanshu showed a balance of 7000 B (a) Cheques of 1,000 directly deposited by a customer. (b) The bank has credited Mr. Himanshu for 700 as interest. (c) Cheques for 3000 were issued during the month of December but of these cheques for 1,000 were not presented during the month of December. |
| Answer» Balance as per cash book 3300 | |
| 11. |
On March 31, 2017 the cash book showed a balance of 3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for 700, 300 and 180 respectively had not presented for payment, Also, a cheque amounting to 1,200 deposited into the account had not been credited. Prepare a bank reconciliation statement. |
| Answer» Balance as per passbook 3680 | |
| 12. |
Prepare Bank Reconcialiation Statement as on 31st March 2019 from the following particulars: `{:(,,Rs.),((i), "Bank balance as per Pass Book.","10,000"),((ii),"Cheque deposited into the Bank ,but no entry was passed in Cash Book.","500"),((iii),"Cheque received and entered in Cash Book but not sent to bank.","1,200"),((iv),"Credit side of the Cash Book bank column cas short.","200"),((v),"Insurance premium paid directly by the bank under the standing advice.","600"),((vi),"Bank charges entered twice in the Cash Book.","20"),((vii),"Cheque issued but not presented to the bank payment.","500"),((viii),"Cheque received entered twice in the Cash Book.","1,000"),((ix),"Bill disounted dishonoured not recorded in the Cash Book.","5,000"),((x),"Bank wrongly allowed interest of Rs,500, which was reversed by it on 5th April, 2019",""):}` |
| Answer» Correct Answer - Balance as per Cash Book (Dr.)-Rs. 11,980 | |
| 13. |
Bank Statement of a customer shows bank balance of Rs. 62,000 on 31st March, 2019. On comparing it with the Cash Book the following discreption were noted (i) Cheques were pain into the bank in March but were credited in Apirl: P-Rs. 3,500 ,Q -Rs. 2,500, R-Rs.2,000. (ii) Cheques issued in March were presented in April , X-Rs. 4,000, Q-Rs. 4,500 (iii) Cheque for Rs. 1,000 received fromf customer entered in the Cash Book but was not banked. (iv) Pass Book shows a debit of Rs. 1,000 for bank charges and credit of Rs. 2,000 as interest (v) Intreste on investment Rs. 2,500 collected by the bank appeared in the Pass Book. Prepare Bank Reconcilition Statement showing the balance as per Cash Book on 31st March, 2019. |
| Answer» Correct Answer - Balance as per Cash Book - Rs. 59,000 | |
| 14. |
When you proced to reconcile the Bank Account starting with Debit Cash Book balance, how, is the following dealt with and why? (i) Cheques issued but not with any why? (ii) Cheques deposited but not yet credtied. (iii) Bank charges charged by the bank not recorded in the Cas Book. (iv) Interest allowed by the bank not r ecorded in the Cash Book. |
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Answer» (i) Cheques issued but not yet presente for payment are added because the bank will show higher balance since the cheque have not been paid (ii) cheques deposted but not credited because the bank will show lower balance as the cheques as the cheques have not been realised by the bank (iii) Bank charges are deducted because the bank has already crediterd the debited the account and thus, Cash Book shows higher balance. (iv) Interest allowed is added because the bank has already credited the account and thus, Cash Book shows lower balance |
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| 15. |
Prepare Bank Reconciliation Statement as on 30th September, 2016 from the following particulars : `{:(,,Rs.),((i), "Bank Balance as per Pass Book.","10,000"),((i),"Cheque deposited into bank but no entry was passed in Cash Book.","500"),((iii),"Cheque received and entered in Cash Book but not sent to bank.","1,200"),((iv),"Insurance premium paid directly by the bank." ,"800"),((v),"Bank charges entered twice in the Cash Book.","20"),((vi),"Cheque received entered twice in Cash Book.","1,000"),((vii),"Bill discounted dishonoured not recorded in the cash book.","5,000"):}` |
| Answer» Correct Answer - Balance as per Cash Book - Rs. 17,480 | |
| 16. |
Prepare Bank Reconcilation Statement from the following particulars on 31st July, 2018 : (i) Balance as per the Pass Book Rs. 50,000 (ii) Threee cheques for the Rs. 6,000 Rs. 3,937 and Rs. 1,525 issued in last week of July, 2018 were presented for payment to the bank in August, 2018 (iii) Two cheques of Rs.500 Rs. 650 sent to the bank for collection were not entered in the Pass Book by 31st July, 2018 (iv) The bulk charged Rs. 460 for its commission and allowed interest of Rs. which were not mentioned in the Bank Column of the Cash Book. |
| Answer» Correct Answer - Balance as per Cash Book - Rs. 40,048 | |
| 17. |
Draw Bank Reconciliation Statement showing adjustment between your Cash Book and Pass Book as on 31st March, 2011: (i) On 31st March, 2011 your pass book showed a balance of Rs. 6,000 to your credit (ii) Before that date, you had issued cheques amounting to Rs. 1,500 of which cheques of Rs. 900 have been presented for payment (iii) A cheque of Rs. 800 Paid by out into the bank on 29th March, 2011 is not yet credited in pass book (iv) There was credit of Rs. 85 for i ntrested on Current Account in the pass book On 31st March, 2011 a cheque for Rs. 510 received by you and was paid into bank but the same was omitted to be entered in cash book |
| Answer» Correct Answer - Balance as per Cash Book - Rs. 5,605 | |
| 18. |
A business r eceicves its bank statement showing the closing balance as Rs. 8,500 overdrawn. It is found that there were unpresented cheques amounting to Rs. 2,000 and uncredited deposits amounted to Rs. 1,500. Overdraft as per Cash Book isA. Rs. 5,000B. Rs. 8,000C. Rs. 9,000D. Rs. 12,000 |
| Answer» Correct Answer - C | |
| 19. |
Current account shows ₹ 1,000 as overdrawn . When bank statement is received, it was identified that one of debors has deposited ₹ 400 into the account and bank charges of ₹ 20 had been debited to the account. Bank statement balance isA. ₹ 1,420 (Dr.)B. ₹ 620 (Dr.)C. ₹ 4,300 (Cr.)D. ₹ 1,700 (Dr.) |
| Answer» Correct Answer - B | |
| 20. |
Prepare a Bank Reconciliation Statement as on 31st March, fromt the following (i) On 31st March, 2019 Cash Book of firm showed bank balance or Rs. 31,000 (Dr.) (ii) Cheques had been issued for Rs. 30,000 out of which cheques of Rs. 24,000 were presented for payment (iii) Cheques of Rs. 8,400 wre deposited in the bank on 28th March, 2019 but had not been credited by the bank. Also a cheque of Rs. 3,000 entered in the Cash Book on 30th March, 2019 was banked on 3rd April. (iv) A cheque from Suresh for Rs. 2,400 was depostied by the bank on 26th March, ,2019 was dishobnoured, advice was received on 2nd April (v) Pass Book showed bank charges of Rs. 120 debited by the bank (vi) One of the Debtors deposited Rs. 3,000 in the bank account of the firm on 26th March, 2019 but the intimation in this respect was received from the bank on 2nd April |
| Answer» Correct Answer - Balance as per Pass Book - Rs. 31,080 | |
| 21. |
Passbook is a copy of:A. ) Copy of customer AccountB. Bank column of cash bookC. Cash column of cash bookD. Copy of receipts and payments |
| Answer» Correct Answer - A | |
| 22. |
From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008 (i) Debit balance as per Cash Book Rs. 10,000 (ii) A cheque for Rs. 500 issued in favour of Karan has not been presenteid for payment. (iii) A bill for Rs. 700 retired by bank under a rebate of Rs. 20, the full amount of the bill was credited in the Cash Book. (iv) A cheque for the Rs. 295 deposited in the bank has been deshonourd. (v) A sum of Rs. 800 deposited in the bank hs been credite as Rs. 80 in the Pass Book (vi) Payment side of the Cash Book has been undercast by Rs. 200 (vii) A bill receivable for Rs. 1,000 (discounted with the bank in November 2008) dishonoured on 31st December, 2018 |
| Answer» Correct Answer - Balance as per Pass Book - Rs. 8,305 | |
| 23. |
When you proceed to reconcile then Bank Account starting with Credit Cash Book balance how will you deal with the transactions given n Q .8 ? |
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Answer» (i) Cheque issued but not yet presented for payment are deducted because bank shows lower overdrawn balance (ii) Cheques deposited but nor cleard are added because bank shows higher overdrawn balance (iii) Bank charges are added because bank shows higher overdrawn balance (iv) Intrested allowed is deducted because bank shwos lower overdrawn balance |
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| 24. |
On 31st March, 2019 Bank Account is the books of Ramesh shows a credit balance of Rs. 36,000. On the same date, outstanding cheques amounted to Rs. 14,000 and outstanding deposits amounted to Rs. 20,000. A chanrge for Rs. 5,000 received from a debtor, was subsequently dish onoured. The receipt had been correctly recordded but not entry has yet been the made in the books for the dishonour. On the basis of the above information, determin e the balance as per the Bank Statemet. |
| Answer» Correct Answer - Rs. 47,000 Overdraft. | |
| 25. |
State two transactions which may be recorded in Pass Book But not in Cash Book |
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Answer» (i) Interest allowed or credited by bank (ii) Bank charges and commission charged by the bank |
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| 26. |
What is Bank Reconciliation Statement ? Explain briefly any four paints regarding need and importance of preparing a Bank Reconciliation Statement |
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Answer» Bank Reconciliation Statement -A bank reconciliation statement is a summary of banking and business activity that reconciles an entity’s bank account with its financial records. The statement outlines the deposits, withdrawals and other activity affecting a bank account for a specific period. Importance of bank reconciliation statement - 1) A bank reconciliation statement summarizes banking and business activity, reconciling an entity’s bank account with its financial records. 2)Bank reconciliation statements confirm that payments have been processed and cash collections have been deposited into a bank account. 3)All fees charged on an account by a bank must be accounted for on a reconciliation statement. 4) After all adjustments, the balance on a bank reconciliation statement should equal the ending balance of the bank acco |
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| 27. |
What is a Bank Reconciliation Statement? Explain the purpose of preparing such a statement |
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Answer» Bank reconciliation statement - A bank reconciliation statement is a summary of banking and business activity that reconciles an entity’s bank account with its financial records. The statement outlines the deposits, withdrawals and other activity affecting a bank account for a specific period. purpose : 1) A bank reconciliation statement summarizes banking and business activity, reconciling an entity’s bank account with its financial records. 2) Bank reconciliation statements confirm that payments have been processed and cash collections have been deposited into a bank account. 3) All fees charged on an account by a bank must be accounted for on a reconciliation statement. 4) After all adjustments, the balance on a bank reconciliation statement should equal the ending balance of the bank account. |
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| 28. |
State two errors committ ed in Cash Book which are condidered while preparing Bank Reconciliation Statement |
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Answer» (i) Overcating or undercasting of bank column of the Cash Book (ii) Wrong amount recorded in bank column of Cash Book |
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| 29. |
Balance as per passbook of Mr. Kumar is 3,000. (a) Cheque paid into bank but not yet cleared Ram Kumar 1,000 Kishore Kumar 500 (b) Bank Charges 300 (c) Cheque issued but not presented Hameed 2,000 Kapoor 500 (d) Interest entered in the passbook but not entered in the cash book 100 Prepare a bank reconciliation statement. |
| Answer» Balance as per cash book 2200 | |
| 30. |
Bank Reconciliation Statement is prepared so that the difference between the undermentioned balaces can be recociled :A. Difference in the balance in the bank and the cash balance.B. Difference in the balance in the Pass Book in the beginning and at the endC. Difference in the Pass Book and Cash Book balances.D. None of the above |
| Answer» Correct Answer - C | |
| 31. |
Prepare Bank Reconciliation Statement from the following `{:(,,Rs.),((i), "Debit balance as pert the Cash Book","15,000"), ((ii), "Cheques despostied but not cleared","1,000"),((iii), "Cheques issued but not presented.","1,500"), ((iv), "Bank interest","200"):}` |
| Answer» Correct Answer - Balance as per Pass Book - Rs. 15,700 | |
| 32. |
Pass Book of the account holder is a copy ofA. the bank columns in the Cash Book of the account holder.B. the relevant account in the books of a bankC. the cash columns in the Cash Book of a customerD. None of the above |
| Answer» Correct Answer - B | |
| 33. |
Bank Reconciliation Statement is prepared.A. to know payments made through cheques.B. to know he errors in the Pass BookC. to comapare the Cash Book with Pass Book and ascertain the differencesD. None of the above |
| Answer» Correct Answer - C | |
| 34. |
Bank Reconceiliation Statement isA. a part of Double Entry System.B. not a part of Double Entry System.C. part of Bank StatementD. None of these |
| Answer» Correct Answer - B | |
| 35. |
Bank Recnciliation Statement is preparedA. at the end of each weekB. at the of each of monthC. at the end of the accounting year.D. whenever a bank statement is received |
| Answer» Correct Answer - D | |
| 36. |
Balance shown in the Balance Sheet is ofA. Cash Book.B. Pass Book.C. Adjusted Cash BookD. None of these |
| Answer» Correct Answer - C | |
| 37. |
Which of the following not require adjustment in the Cash Book balance ?A. Cheque issued but not presented for paymentB. Cheque deposited but not cleared.C. Cheque wrongly creditd by bankD. All of the above |
| Answer» Correct Answer - C | |
| 38. |
Debit balance in the Cash Book is equivalent toA. Overdraft as per Pass BookB. Credit balance as per Pass Book.C. Overdraft as per Cash BookD. None of these |
| Answer» Correct Answer - B | |
| 39. |
Bank Reconcilation Statement is prepared byA. Creditors.B. Debtors.C. BankD. Account holder |
| Answer» Correct Answer - D | |
| 40. |
Is it correct than Bank Reconciliation Statement is prepared once i.e., at the end of year ? |
| Answer» No, it is not correct. It can be prepared at any time of the year say every month or every quarter or half yearly or yearly | |
| 41. |
Bank Reconciliation Statement is prepared by matchingA. enteries in Pass Book with entries in bank columns of Cash Book.B. enteries in Pass Book with entries in bank columns Cash Book.C. enteries in Pass Book with entries in bank columns and cash columns of Cash Book.D. None of the abvoe |
| Answer» Correct Answer - A | |
| 42. |
State any two reasons of difference between Cash Book and Bank Pass Book balances. |
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Answer» (i) Cheques deposited but not credited. (ii) Cheques issued but not presented for payment. |
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| 43. |
Cash book balances was ₹ 1,790 (Dr.) . When compared with the bank statement, it was identified that unpresented cheques were ₹ 1,040 and deposits not credited were ₹ 820. Balance of the bank statement willA. ₹ 70 (Dr.)B. ₹ 1,570 (Cr.)C. ₹ 2,010 (Cr.)D. ₹ 3,650 (Cr.) |
| Answer» Correct Answer - C | |
| 44. |
If balance in the bank statement shows ₹ 3,000 (Dr.) and there are deposits of ₹ 800 not yet credited and unpresented cheques totalling ₹ 500, the balance in the Cash Book should beA. ₹ 3,300 (Cr.)B. ₹ 2,700 (Cr.)C. ₹ 4,300 (Cr.)D. ₹1,700 (Dr.) |
| Answer» Correct Answer - B | |