MCQs For NCERT Class 11 Chapter 5 Bank Reconciliation Statement

Please refer to the MCQ Questions for Class 11 Accountancy Chapter 5 Bank Reconciliation Statement with Answers. The following Bank Reconciliation Statement Class 11 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 11. Our experts have designed MCQ Questions for Class 11 Accountancy with Answers for all chapters in your NCERT Class 11 Accountancy book.

Bank Reconciliation Statement Class 11 MCQ Questions with Answers

See below Bank Reconciliation Statement Class 11 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below. 

Question. A bank reconciliation statement is prepared by?
(a) Banker
(b) Account holder in a bank
(c) Creditor
(d) Supplier

Question. Which of the following points out the need of bank reconciliation statement?
(a) It helps in locating any error that may have been committed either in the cash book or in the pass book.
(b) It helps in bringing out the unnecessary delay in the collection of cheques by the bank.
(c) It helps in avoiding embezzlements or misappropriation of funds by regular periodic reconciliation.
(d) All of the above

Question. If Cash-Book (Bank Column) shows a balance of Rs. 10,000 and following were observed while comparing it with Pass-Book: A cheque of Rs. 1000 deposited in Bank but not recorded in Cash-Book and the payment side of Cash-Book was under cast by Rs. 100. The balance as per Pass-Book would be:
(a) Rs. 11,000
(b) Rs. 10,900
(c) Rs. 9,100
(d) Rs. 8,900 

Question. Bank wrongly credited Rs. 18,000 to a trader’s account. This amount would be recorded in Cash-Book:
(a) On Debit sid
(b) On Credit side
(c) Either on Debit or Credit side
(d) Neither on Debit nor on Credit side 

Question. Pass book is a copy of………….as it appears in the ledger of the bank.
(a) customer’s account
(b) cash book relating to cash column
(c) firm’s receipts and payments
(d) None of the above

Question. A bank reconciliation statement can be prepared with the balance of
(a) pass book
(b) cash book
(c) Both pass book and cash book
(d) None of the above 

Question. Which of the following is an example of difference caused due to time gap in cash book and pass book?
(a) Cheques issued by the firm to suppliers worth ` 50,000 not presented by supplier to the bank for payment immediately.
(b) Cheques paid into the bank of ` 75,000 but not yet collected.
(c) Cheque collection charges worth ` 25,000 levied by bank.
(d) All of the above

Question. Which of the following is an example of difference caused due to errors in cash book and pass book?
(a) Cheques issued by the firm to suppliers worth ` 60,000 not presented by supplier to the bank for payment immediately. 
(b) Cheques paid into the bank of ` 93,000 but not yet collected.
(c) Wrong totalling as ` 2,50,000 instead of ` 2,30,000 by the accountant of the firm.
(d) Cheque collection charges worth ` 45,000 levied by bank 

Question. Nita’s current account shows an overdraft of ` 5,000 as per her cash book. When she receives her bank statement, she noticed that one of her debtors had deposited ` 2,500 into her account and the bank has debited ` 100 as bank charges. Thus, balance as per bank statement will be
(a)  5,000 favourable
(b)  2,600 overdraft
(c)   2,600 favourable
(d) None of these

Question. Cheque amounting to ` 5,000 issued to P but recorded as ` 500 in the cash book is an example of difference due to time lag.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. Difference caused due to bank charges of ` 500 debited to firm’s current account by the bank is an example of difference caused due to time lag.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. The bank pass book of KYA Ltd. had an overdraft of ` 20,000. Interest on overdraft was ` 2,000. Insurance premium paid by the bank was ` 200. What is the balance as per cash book? 
(a)  22,200 overdraft
(b)  22,200 favourable balance
(c) 17,800 overdraft
(d)  17,800 favourable balance

Question. Normally, the cash book shows a ……… balance while pass book shows ……… balance.
(a) debit; credit
(b) credit; debit
(c) debit; debit
(d) credit; credit

Question. Favourable balance as per the cash book means credit balance in the bank column of the cash book.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. When money is withdrawn from the bank, the bank …………. the account of the customer.
(a) credit
(b) debit
(c) Either (a) or (b)
(d) No effect 

Question. If a cheque is not paid by the bank, it is known as ……… .
(a) Cancelled
(b) Dishonoured
(c) Honoured
(d) None of these 

Question. If the cash book balance is taken as starting point the items which make the cash book balance smaller than the pass book must be ……… for the purpose of reconciliation.
(a) deducted
(b) added
(c) multiplied
(d) divided

Question. If bank balance as per cash book is ` 50,000, cheques issued but not presented for payment of ` 6,000 and bank charges of ` 400 were not entered in the cash book, then balance as per pass book will be
(a)  50,000
(b)  56,000
(c)  55,600
(d)  56,400

Question. Which of the following statements correctly defines an overdraft?
(a) Overdraft is one where the bank account becomes positive and the businesses in effect have borrowed from the bank.
(b) Overdraft is one where the bank account becomes positive and the businesses in effect have lent to the bank.
(c) Overdraft is one where the bank account becomes negative and the businesses in effect have borrowed from the bank.
(d) None of the above

Question. If balance as per the cash book is ` 54,000 and ` 100 for bank incidental charges are debited to Anil & Co. account, which is not recorded in cash book and cheques for ` 5,400 is deposited in the bank but not yet collected by the bank, then what will be the balance in the pass book?
(a) 48,500
(b)  59,500
(c)  59,300
(d) None of these

Question. In the bank statement, cash deposited by a firm is shown as ……… .
(a) debit
(b) credit
(c) liability
(d) provision

Question. Unfavourable bank balance means
(a) credit balance in pass book
(b) credit balance in cash book
(c) debit balance in cash book
(d) None of the above

Question. The debit balance in Naman’s cash book is ` 40,960. A bill for ` 9,900 discounted with the bank is entered in the cash book without recording the discount charges of ` 900. What will be the amount in pass book?
(a)  40,960
(b)  40,060
(c)   41,860
(d) None of these 

Question. Overdraft is shown in the cash book as a ……… balance. 
(a) debit
(b) credit
(c) Either (a) or (b)
(d) None of these

Question. In the bank statement, where thebalance is followed by Dr means that there is an
(a) overdraft
(b) positive balance
(c) zero balance
(d) None of the above

Question. An overdraft is treated as positive figure in a bank reconciliation statement.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. Which of the following statement is true?
(a) When debit balance as per cash-book is given and balance as per pass-book is to be ascertained.
(b) When credit balance as per pass-book is given and balance as per cash-book is to be ascertained.
(c) When credit balance as per cash-book is given and the balance as per pass-book is to be ascertained.
(d) All of the above. 

Question. A bank reconciliation statement is mainly prepared to :
(a) Reconcile the cash balance of the cash-book.
(b) Reconcile the difference between the bank balance shown by the cash-book and pass- book.
(c) Both (A) and (B)
(d) None of the above. 

Question. On 31st March, 2021, P had an overdraft of ` 8,000 as shown by his cash book. Cheques amounting to ` 2,000 had been paid by him but were not collected by the bank. He issued cheques of ` 800 which were not presented to the bank for payment. What will be the balance as per bank pass book?
(a)  9,200 favourable balance
(b)  9,200 overdraft
(c)  6,800 favourable balance
(d)  6,800 overdraft

Question. If cheques are not presented forpayment, the favourable balance as per cash book will be less than the favourable balance as per pass book.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Question. Find out the bank balance as per cash book if overdraft as per pass book is ` 10,000 and cheques deposited in the bank but not credited are for ` 4,000.
(a)  6,000 favourable balance
(b)  6,000 overdraft
(c)  14,000 favourable balance
(d)  14,000 overdraft

Question. Reconciliation of the cash book and the bank pass book balances amounts to an explanation of differences between them.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. The differences between the cash book and the bank pass book is caused by
(i) timing differences in recording of the transactions.
(ii) errors made by the business or by the bank.
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (ii)
(d) Neither (i) nor (ii)

Question. A cheque of ` 500 received from a debtor was recorded in the cash book but not deposited in the bank for collection. How will it be treated for the purpose of bank reconciliation statement?
(a)  500 will be deducted from the balance as per pass book.
(b)  500 will be deducted from the balance as per cash book.
(c)  500 will be added to the balance as per cash book.
(d) None of the above

Question. The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. A cheque of `500 deposited into bank but was not recorded in the cash book. How will it be treated for the purpose of bank reconciliation statement?
(a)  500 will be deducted from the balance as per pass book.
(b)  500 will be deducted from the balance as per cash book.
(c)  500 will be added to the balance as per pass book.
(d) None of the above

Question. The bank pass book of M/s IF & Co. showed a credit balance of ` 45,000 on 31st May, 2021. Cheques issued before 31st May, 2021, amounting to ` 25,940 had not been presented for encashment. There was also a debit in the pass book of ` 2,500 in respect of a cheque dishonoured on 31st May, 2021. What is the balance as per cash book?
(a)  68,440
(b)  73,440
(c)  21,560
(d) None of these 

Question. When payments are made by the bank as per the standing instructions of the customer, the balance in the pass book will be more as compared to the cash book.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. The payment side of the cash book was under cast by ` 100. How will it be treated for the purpose of bank reconciliation statement?
(a)  100 will be deducted from the balance as per pass book.
(b) 100 will be deducted from the balance as per cash book.
(c)  100 will be added to the balance as per cash book.
(d) None of the above

Question. Direct collections received by the bank on behalf of the customers worth ` 25,000 would increase the balance as per the bank pass book, when compared to the balance as per the cash book.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. On 31st March, 2021, the bank column of the cash book of XYZ Ltd. showed a credit balance of ` 1,18,100. Cheques received and recorded in the cash book but not sent to the bank for collection of ` 12,400. Payment received from a customer directly by the bank of  ` 27,300 but no entry was made in the cash book. What will be the balance as per bank pass book? 
(a)  1,03,200 overdraft
(b)  1,33,000 overdraft
(c)  1,03,200 favourable balance
(d)  1,33,000 favourable balance

Question. One outgoing cheque of ` 300 was recorded twice in the cash book. How will it be treated for the purpose of bank reconciliation statement?
(a)  600 will be added to the balance as per cash book.
(b)  300 will be deducted from the balance as per cash book.
(c)  300 will be added to the balance as per cash book.
(d) None of the above

Question. Cheques issued but not presented for payment will reduce the balance as per the pass book.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Question. How is ‘deposit in transit’ treated in bank reconciliation?
(a) It will be added to bank balance.
(b) It will be deducted from bank balance.
(c) It will be deducted from the cash book balance.
(d) It will be added to cash book balance.

Question. Overdraft as per the pass book will be less than the overdraft as per cash book, when there are cheques deposited but not collected by the banker worth ` 5,000.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Question. Interest collected by bank from investments amounts to ` 2,000. How will it be treated for the purpose of bank reconciliation statement?
(a)  2,000 will be deducted from the balance as per cash book.
(b)  2,000 will be added to the balance as per pass book.
(c)  2,000 will be added to the balance as per cash book.
(d) None of the above

Question. There is a wrong entry on the credit side of the pass book worth ` 990. How will it be treated for the purpose of bank reconciliation statement?
(a)  990 will be deducted from the balance as per cash book.
(b)  990 will be added to the balance as per pass book.
(c)  990 will be added to the balance as per cash book.
(d) None of the above

Question. Dividend collected by bank from investments amounts to ` 1,500. How will it be treated for the purpose of bank reconciliation statement?
(a)  1,500 will be deducted from the balance as per pass book.
(b)  1,500 will be added to the balance as per pass book.
(c)  1,500 will be deducted from the balance as per cash book.
(d) None of the above 

Question. A wrong entry on debit side of the pass book will be added to the balance as per pass book to reconcile the statements.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Question. If bank sent back the cheque by marking it as NSF, it means 
(a) fake cheque
(b) not sufficient funds
(c) a cheque cannot be cashed because it’s illegal
(d) None of the above 

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Question. Assertion (A) When the cheques are not presented for payment, favourable balance as per the cash book is less than that of the pass book.
Reason (R) If an entry of payment has been recorded in the pass book but not in the cash book, then the balance of pass book will be less than of cash book. 

Question. Assertion (A) A bank reconciliation statement is a statement prepared to reconcile the bank balance as per cash book with the balance as per pass book or bank statement.
Reason (R) The amount of balance shown in the pass book or the bank statement must tally with the balance as shown in the cash book.   

Question. Assertion (A) It is generally experienced that when a comparison is made between the bank balance as shown in the firm’s cash book, the two balances do not tally.
Reason (R) The differences between the cash book and the bank pass book are caused by either timing differences in recording of the transactions or errors made by the business or by the bank. 

Question. Assertion (A) When direct debits are made by the bank on behalf of the customer, the balance in the passbook will be more when compared to the cash book.
Reason (R) If an entry of payment has been recorded in the passbook but not in the cash book, then the balance of passbook will be less than of cash book. 

Fill In The Blanks

Question. Bank Charges debited in pass book are recorded on the _________ side of Cash Book in Bank Column.

Question. When money is withdrawn from Bank, the bank _____________ the account of customer. 

Question. If Bank reconciliation Statement is prepared with debit balance as per cash book, the balance that we arrive at in the end will be ________ balance as per _________. 

Question. If Bank Reconciliation Statement is prepared with Pass book Balance, the transactions which reduces the Cash book balance, Pass book must be _________ for the purpose of reconciliation.

Question. While preparing Bank reconciliation Statement, Pass book is compared with __________ balance of Cash Book.

Question. Cheque issued recorded on the credit side of the Cash book in Cash Column would not affect the bank balance of ___________. ( Cash Book / Pass Book)

Question. Unfavourable balance as per Pass book is _________ balance.

Question. Bank overdraft is ___________ balance as Pass Book.

True /False

Question. Amount directly deposited by customers into Bank but no information received will increase Pass book balance.

Question. While preparing Bank Reconciliation Statement with Pass book balance, if the debit side of Cash Book is overcasted by mistake the pass book balance should be reduced.

Question. If Bank Reconciliation Statement is prepared with Pass book Balance, the transactions which reduce the Cash book balance, Pass book must be increased for the purpose of reconciliation.

Question. A statement showing reasons for differences between Cash Book and Pass book balances on a particular day is called Trial Balance.

Question. Cash Book is the copy of trader’s account in the books of the Bank.

Question. Cheque issued recorded on the credit side of the Cash book in Cash Column would not affect the bank balance of Cash Book

Question. Bank Reconciliation Statement is prepared to reconcile cash book and pass book balances.

Question. Amount directly deposited by customers into Bank but no information received will increase Pass book balance.

Match the following

Question. Match items in List I with terms in List II using the codes given below the lists-

1. Cheques issued by the bank but not yet presented for payment .what will be its effect on cash book	a) Increases the cash book
2. Cheques pay into bank but not yet collected. what will be its effect on cash book	b) increases the pass book
	c) decreases the cash book
	d) decreases the pass book

Question. Match items in List I with terms in List II using the codes given below the lists-

1. Bank reconciliation statement is prepared by	a) Bankers Books
2. Bank statement is prepared in the books	b) Customer’s accountant
	c) Bank reconciliation

Question. Match items in List I with terms in List II using the codes given below the lists-

1. Cheques issued by the bank but not yet presented for payment .what will be its effect on pass book	a) cash book balance is more than pass book balance.
2. Cheques pay into bank but not yet collected. What will be its effect on pass book	b) Pass book balance is more than cash book balance
	c) cash book balance is less than pass book balance.
	d) Pass book balance is less than cash book balance.

Question. Match items in List I with terms in List II using the codes given below the lists-

1. Unfavourable balance as per pass book shows	a) Credit balance
2. favourable balance as per pass book shows	b) Debit balance

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Pass book Rs is given?

1. Receipt side of cash book was overcast by Rs 2,000.	a) 2,000 Plus side
2. Payment side of cash book was undercast by Rs 2,000	b) 2,000 minus side
	c) none of the above

Question. Match items in List I with terms in List II using the codes given below the lists-

1. Direct debits made by the bank on behalf of the customer. what will be its effect on cash book	a) cash book balance is more than pass book balance
2. Amount directly deposited in the bank account what will be its effect on cash book	b) Pass book balance is more than cash book balance
	c) cash book balance is less than pass book balance
	c) cash book balance is less than pass book balance

Question. Match items in List I with terms in List II using the codes given below the lists-

1. Direct debits made by the bank on behalf of the customer. what will be its effect on Pass book	a) Cash book balance is more than pass book balance.
2. Amount directly deposited in the bank account what will be its effect on pass book	b) Pass book balance is more than cash book balance.
	c) Cash book balance is less than pass book balance
	d) Pass book balance is less than cash book balance.

Question. Match items in List I with terms in List II using the codes given below the lists-

1. When debit balance as per cash book is given	a) Balance as per pass book is to be ascertained
2. When credit balance as per pass book is given	b) Balance as per cash book is to be ascertained

Question . Match items in List I with terms in List II using the codes given below the lists-

1. When debit balance as per pass book is given	a) Balance as per cash book is to be ascertained
2. When credit balance as per cash book is given	b) Balance as per pass book is to be ascertained