Class 11 Accountancy Chapter 5 Bank Reconciliation Statement MCQ Question with Answers

Bank Reconciliation Statement Class 11 MCQ is one of the best strategies to prepare for the CBSE Class 11 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQs on Bank Reconciliation Statement Class 11, which will help them all through their board tests.

Bank Reconciliation Statement Class 11 MCQ Questions with Answer

Class 11 Accountancy MCQ with answers are given here to Chapter 5 Bank Reconciliation Statement. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 11 Accountancy syllabus. By Solving these Class 11 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 11 Annual exam.

Learn Class 11 Bank Reconciliation Statement MCQs with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 11 Accountancy Bank Reconciliation Statement MCQ with answers given below

Question 1. Cheques deposited but not collected will result in:
a) Increasing the balance of pass-book when compared to cash-book.
b) Increasing the balance of cash-book when compared to pass-book.
c) Decrease the balance of pass-book when compared to cash-book.
d) Both (B) and (C) 

Question 2. When cheques issued by the trader but not yet presented for payment will:
a) Decrease the pass-book, and no affect on the cash-book.
b) No affect on the pass-book, and decrease the cash-book.
c) Both (A) and (B)
d) None of the above. 

Question 3. A cheque of ` 50,000 is deposited by a firm but it got dishonoured due to insufficient balance in firm’s account. What will be the reason for difference in bank balance in cash book and pass book? 
a) Cheque entry in pass book but not in cash book.
b) Cheque entry in cash book but not in pass book.
c) Cheque entry in both pass book and cash book.
d) None of the above

Question 4. 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 5. 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 6. Which of the following would not be a reason for difference between bank balance as per cash book and pass book?
a) Bank charges of ` 200 
b) Cheques deposited but not yet cleared worth ` 9,900
c) Credit purchases of ` 30,000
d) Cheques issued but not yet presented for payment worth ` 3,000

Question 7. Amended Cash-Book includes:
a) Errors in Cash-Book
b) Errors in Pass-Book
c) Both (A) & (B)
d) None of the above 

Question 8. When the pass book balance is taken as the starting point, items which make the pass book balance ……… than the balance in the cash book must be deducted for the purpose of reconciliation.
a) higher
b) lower
c) equal
d) None of the above

Question 9. If the overdraft as per the pass book is taken as the starting point, the cheques issued but not presented are to be ……… in the bank reconciliation statement.
a) deducted
b) added
c) ignored
d) None of these

Question 10. An auto debit transaction made by bank for which approval is given by the company causes difference in bank balance in cash book and pass book because
a) Entry in pass book but not in cash book.
b) Entry in cash book but not in pass book.
c) Entry in both pass book and cash book.
d) None of the above

Question 11. If the credit balance as per the pass book is taken as the starting point, then ` 39,000 directly deposited by the customer in the bank account is to be ……… in the bank reconciliation statement.
a) deducted
b) added
c) ignored
d) None of these

Question 12. If the balance as per the cash book is taken as the starting point, then a wrong entry on the debit side of the pass book for ` 2,000 is to be ……… in the bank reconciliation statement.
a) deducted
b) added
c) ignored
d) None of these

Question 13. How would have Ms Mini classified the reasons for differences between cash book and bank book balances?
a) Timing differences in recording of the transactions.
b) Errors made by the business or by the bank.
c) Both (a) and (b)
d) Neither (a) nor (b) 

Question 14. Which of the following is not a reason due to time difference on recording of the transactions while preparing bank reconciliation statement?
a) Unpresented cheques.
b) Uncollected cheques.
c) Payment side of cash book overcast.
d) Direct deposit by Customer into bank. 

Question 15. Using which of the following statements wouldMsMini have explained the need of bank reconciliation statement to Vinni?  
a) To match the balances as it is generally experienced that when a comparison is made  between the bank balance as shown in the firm’s cash book and the bank statement, the two balances do not tally.
b) To find out the cash balance.
c) To understand liquidity position of the firm.
d) None of the above

Question 16. Using which of the following statements would Ms Mini have explained the importance of bank reconciliation statement to Vinni?
a) It helps to assure the customer about the correctness of the bank balance shown by the pass book.
b) It helps the management to keep a track of cheques, which have been sent to the bank for collection.
c) Embezzlements are avoided by regular periodic reconciliation.
d) All of the above

Question 17. Cheques issued but not presented in the bank are called:
a) Un-presented cheques
b) Un-credited cheques
c) Un-collected cheques
d) Un-cleared cheques 

Question 18. Bank paid house tax of ` 350 on his behalf but no information was received from the bank will lead to
a) balance in cash book greater than the balance of pass book.
b) balance in cash book lesser than the balance of pass book.
c) balance in pass book greater than the balance of cash book.
d) None of the above

Question 19. What is the balance of pass book on 31st March, 2021?
a)  4,33,980
b)  4,50,250
c)  3,72,000
d) None of these 

Question 20. Cheques of ` 15,400 were deposited into bank for collection but not collected by bank will be
a) added to debit balance of cash book.
b) deducted from debit balance of cash book.
c) ignored.
d) None of the above

Question 21. Difference caused due to bank charges amounting to ` 200, is an example of
a) timing differences in recording of transactions.
b) errors made by the business.
c) errors made by the bank.
d) None of the above

Question 22. Bank statement is issued by:
a) Bank
b) Auditors
c) Depositor / Customer
d) None of the above  

Question 23. While preparing the bank reconciliation statement, cheques drawn but not encashed before 31st December, 2021 for ` 4,000 will be
a) added to credit balance of cash book.
b) deducted from credit balance of cash book.
c) ignored.
d) None of the above

Question 24. Statement that explains the causes of difference between cash-book and bank statement is called:
a) Bank statement
b) Financial statement
c) Income statement
d) Bank reconciliation statement 

Question 25. The differences between the cash-book and bank pass-book is caused by:
a) Timing differences on recording of the transactions.
b) Errors made by the business
c) Errors made by the bank
d) All of the above 

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Question 26. Debit Balance as per Cash book shows:
a) Bank withdrawls are more than deposits.
b) Bank withdrawls are less than deposits
c) Bank deposits are less than withdrawls.
d) All of the above 

Question 27. While preparing the bank reconciliation statement, bills receivable for ` 700 previously discounted with the bank now dishonoured, will
a) increase the credit balance of cash book.
b) decrease the credit balance of cash book.
c) will not affect the credit balance of cash book.
d) None of the above

Question 28. Which of the following transaction will result in higher balance in the bank column of cash-book in comparison to pass-book?
a) Cheques issued but not presented for payment.
b) Interest allowed by bank.
c) Bank charges entered twice in each book.
d) Cheques paid into bank for collection but not yet credited. 

Question 29. What will be the balance as per pass book on 31st December, 2021?
a)  6,920
b)  9,270
c)   4,570
d)  13,870

Question 30. ……… is a statement which is prepared mainly to reconcile the difference between the bank balance as shown by the cash book and pass book.
a) Bank Reconciliation Statement
b) Bank Statement
c) Cash Flow Statement
d) Fund Flow Statement

Question 31. Bank reconciliation statement is prepared by:
a) Bank
b) Customer’s accountant
c) Auditors
d) None of the above  

Question 32. Which of the following is not a part of Double Entry System?
a) Cash-book
b) Journal
c) Trial balance
d) Bank reconciliation statement 

Question 33. As per the given case, what could be the possible reason for difference in balance of cash book and pass book?
a) Timing differences in recording of transactions.
b) Errors made by the business.
c) Both (a) and (b)
d) None of the above

Question 34. Bank reconciliation statement is:
a) Part of Bank statement
b) Memorandum statement
c) Part of journal
d) Ledger account 

Question 35. Bank Reconciliation statement is prepared in the books of:
a) Bank
b) Guarantor
c) Depositor/ trader
d) None of the above 

Question 36. Why is a bank reconciliation statement prepared?
a) It is generally experienced that when a comparison is made between the bank  balance as shown in the firm’s cash book and the bank statement, the two balances do not tally.
b) To find out the cash balance.
c) To understand short term liabilities.
d) None of the above

Question 37. Credit balance in cash book reflects
a) overdraft
b) favourable balance
c) nil balance
d) None of these

Question 38. Credit balance of bank account as per cash book essentially means
a) bank account becomes negative and the businesses in effect have borrowed from the bank.
b) there is high positive balance in bank account.
c) business has paid all its bank loans.
d) None of the above

Question 39. How will a credit of ` 150 for interest on current account be treated while preparing the bank reconciliation statement?
a) Added to balance of pass book
b) Deducted from balance of pass book
c) Ignored
d) None of the above

Question 40. What documents of Elegance Ltd does Vinni require for preparation of bank reconciliation statement?
a) Cash book of Elegance Ltd
b) Pass book of Elegance Ltd
c) Both (a) and (b)
d) Neither (a) nor (b)

Question 41. On 30th March, 2021, a cheque of ` 1,570 received by her was paid into bank but the same was omitted to be entered in the cash book is an example of
a) timing differences in recording of transactions.
b) errors made by the business.
c) errors made by the bank.
d) None of the above

Question 42. Which of the following is not a reason due to errors made by the business while preparing bank reconciliation statement?
a) Uncollected cheques.
b) Receipt side of Cash Book overcast
c) Cheques debited in Cash Book but not banked.
d) Bank Charges recorded twice in Cash Book.

 

Question 43. When Bank Reconciliation Statement is prepared with Credit balance as per Pass Book, the Balance derived will be
a) Credit Balance as per Cash Book
b) Debit Balance as per Pass Book
c) Debit Balance as per Cash Book
d) Both (A) and (C) 

Question 44. Choose an item that will increase the credit balance of Pass Book but Cash Book Balance will remain unaffected till information is not received
a) Interest allowed by Bank
b) Directly deposited by customer into Bank
c) Rent Collected by Bank on our behalf
d) All of above. 

Question 45. ‘‘She had issued cheques amounting to ` 8,000 out of which cheques amounting to ` 3,200 have so far been presented for payment.’’ What will be the amount deducted from the balance of pass book to reconcile it with the balance of cash book?
a)  8,000
b)  3,200
c)  4,800
d) None of the above

Question 46. While preparing Bank Reconciliation Statement with the Amended Cash-Book, which of the item is not recorded in amended cash-book?
a) Wrong amount entered in Cash-Book
b) Dividend collected by Bank
c) Cheques issued but not yet presented
d) Interest allowed by Bank. 

Question 47. Cash Book of a trader shows a debit bank balance of Rs. 6400. While comparing it with Pass-Book, it was found that a cheque of Rs. 7200 issued was recorded on the debit side of Cash-Book. The Pass-Book balance at this point of time would be:
a) Nil
b) Rs. 8000 Cr.
c) Rs. 8000 Dr.
d) None of above

Question 48. What will be the balance as per cash book on 31st March, 2021?
a) 11,205
b)  15,000
c)  17,725
d) None of the above

Question 49. ‘Debit balance as per pass book and credit balance as per cash book is a favourable balance’. You are required to answer on Vinni’s behalf whether the above statement is
a) True
b) False
c) Can’t say
d) Partially true 

Question 50. Cheques issued to creditors but not yet presented to the bank for payment amounting to ` 72,000 will be
a) added to debit balance of cash book.
b) deducted from debit balance of cash book.
c) ignored.
d) None of the above

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