CBSE Class 11 Accountancy Chapter 5 Practice Questions

Class 11 Accountancy Extra Questions

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Bank Reconciliation Statement Class 11 Accountancy

Ch-5 Bank Reconciliation Statement

1. What does favourable balance in passbook indicate?
2. What is meant by debit balance in pass book?
3. What does unfavourable balance in pass book indicate?
4. Briefly explain the statement ‘wrongly debited by the bank’ with the help of an example.
5. Bank Statement of a customer shows a bank balance of Rs.62,000 on 31 March 2018.
   On comparing it with the cash book, the following discrepancies were noted
   1. Cheques were paid into the Bank in March but were credited in April.
      P – Rs.3,500, Q – Rs.2,500. R – Rs.2,000
   2. Cheques issued in March were Presented in April
      X – Rs.4,000, Q – Rs.4,500
   3. Cheque for Rs.1,000 received from a customer entered in the cash book but was not banked
   4. Passbook shows a debt of Rs.1,000 for bank charges and credit of Rs.2,000 as interest
   5. Interest on investment Rs.2,500 collected by the bank appeared in the passbook.
      Prepare Bank Reconciliation Statement the balance as per cash book on 31 March 2018.
6. Prepare Bank Reconciliation statement on 31st March 2018 from the following particulars:
   1. R’s overdraft as per the Pass Book Rs.12,000 as on 31st March
   2. On 30th March, Cheques had been issued for Rs.70,000 of which cheques worth Rs.3,000 only had been encashed up to 31st March.
   3. Cheques amounting to Rs.3,500 had been paid into the bank for collection but of this only Rs.500 had been credited in the Pass Book.
   4. Bank has charged Rs.500 as interest on overdraft and the intimation of which has been received on 2nd April 2018.
   5. Bank Pass Book shows credit for Rs.1,000 representing Rs.400 Paid by debtor of R direct into the Bank and Rs.600 collected directly by Bank in respect of interest on R’s investment. R had no knowledge of these items.
   6. A cheque for Rs.200 has been debited in bank column of Cash Book by R, but it was not sent to Bank at all.
7. Prepare Bank Reconciliation Statement as on 30th September 2016 from the following particulars
   

   (i) Bank Balance as per Pass Book	Rs.10,000
   (ii) Cheque deposited into bank but no entry was passed in Cash Book	Rs.500
   (iii) Cheque received and entered in Cash book but not sent to Bank	Rs.1,200
   (iv) Insurance premium paid directly by the Bank	Rs.800
   (v) Bank charges entered twice in the Cash Book	Rs.20
   (vi) Cheque received entered twice in Cash Book	Rs.1,000
   (vii) Bill discounted dishonoured not recorded in the Cash Book	Rs.5,000

8. The following facts relate to the business of Roshan who requires you to reconcile his cash book with the pass book balance.
   

   	Amt(Rs)
   Balance as per cash book (Credit)	2,800
   Unpresented cheques	3,440
   Uncredited cheques	2,260

   Additional Information

   1. The debit side of the cash book (bank column) has been undercast by Rs 500.
   2. A cheque of Rs 200 paid to a creditor has been entered by mistake in the cash column.
   3. Bank charges Rs 80 have not been entered in the cash book.
9. On 30th June, 2013, the cash book of Galaxy Ltd, showed a balance of Rs 400 at bank. They had sent cheques amounting to Rs 2,000 to the bank before 30th June but it appears from the pass book that cheques worth only Rs 800 had been credited before that date. Similarly, out of cheques of Rs 1,000 issued during the month of June, cheques for Rs 50 were presented and paid in July.
   The passbook also showed the following payments
   1. Rs 64 as premium on the life policy according to standing instructions.
   2. Rs 400 against a pro-note, as per instructions.

   The pass book showed that the bank had collected Rs 120 as interest on government securities.
   The bank had charged interest Rs 10 and bank charges Rs.4.
   There was no entry in the cash book for the payments, interest, etc.
   Prepare the bank reconciliation statement as on 30th June, 2013.

10. From the following particulars, ascertain the Bank Balance as per Pass Book as on 31st March 2018 (a) without correcting the Cash Book balance and (b) after correcting the Cash Book balance
    1. The bank Balance as per Cash Book on 31st March 2018 Rs.40,000
    2. Cheques issued but not encashed up to 31st March 2018 amounted to Rs.10,000
    3. Cheques paid into the bank but not cleared up to 31st March 2018 amounted to Rs.15,000
    4. Interest on Investments collected by the bank but not entered in the Cash Book Rs.500
    5. Cheques deposited in the bank but not entered in Cash Book Rs.12,500
    6. Bank charges debited in Pass book but not entered in Cash Book Rs.100

Ch-5 Bank Reconciliation Statement

Answer

1. Favourable balance in the passbook indicates the actual amount customer has in its account i.e. the Credit balance.
2. Debit balance in pass book indicates the overdraft i.e. the amount customer has withdrawn over the excess of amount deposited.
3. Unfavourable balance as per pass book means the Debit balance as per passbook.
4. Wrongly debited by the bank is an error done by the bank which means that bank has deducted wrong amount from the account which can be better understood withg the following example:-When a firm issued a cheque of  Rs 1,500 to any of its creditor and it is presented for payment and paid by the bank but in place of Rs 1,500 bank debited it wrongly by Rs 15,000. The above error may be opposite too but in every situation, the balance of cash book and pass book will not tally. The term will be used for it will be wrongly debited by the bank, it generally happens at the time of posting the transaction.

5. BANK RECONCILIATION STATEMENT
   as on March 31, 2018

   Particulars	(Cr.)	(Dr.)
   Balance as per Pass Book (Cr.)	62,000
   Cheques not yet collected	8,000
   Cheques not yet presented		8,500
   Cheque omitted to be banked	1,000
   Bank Interest		2,000
   Bank charges	1,000
   Interest on investment		2,500
   Balance as per Cash Book (Dr.) (Balancing figure)		59,000
   	72,000	72,000

6. BANK RECONCILIATION STATEMENT
   as on 31st March, 2018

   Particulars	(+)	(-)
   Unfavourable balance as per Pass Book (Dr.)		12,000
   Cheques not yet presented		67,000
   Cheques not yet collected	3,000
   Interest on Investments		600
   Directly deposited by a customer		400
   Cheques omitted to be Banked	200
   Bank charges	500
   Unfavourable balance as per Cash Book (Cr.) (Balancing figure)	76,300
   	80,000	80,000

7. Bank Reconciliation Statement
   as on 30th Sep., 2016

   Particulars	(+)	(-)
   Balance as per Pass Book (Cr.)	10,000
   Cheque deposited but no entry passed in Cash Book		500
   Cheque omitted to be Bank	1,200
   Insurance premium paid	800
   Bank charges entered twice in the Cash Book		20
   Cheque received entered twice in the Cash Book	1,000
   Bill dishonoured	5,000
   Balance as per Cash Book (Dr.) (Balancing figure)		17,480
   	18,000	18,000

8. BANK RECONCILIATION STATEMENT

   Particulars	Plus (Rs.)	Minus (Rs.)
   Overdraft as per Cash Book		2,800
   Add: Cheques issued but not yet presented	3,440
   Debit side of the cash book has been undercast	500
   Less: Cheques deposited but not yet credited		2,260
   Wrongly credited in cash column		200
   Bank charges not recorded in cash book		80
   Overdraft as per Pass Book	1,400
   	5,340	5,340

9. Bank Reconciliation Statement
   as on  30th June, 2013

   Particulars	Amount (Rs.)	Amount (Rs.)
   Balance as per Cash Book		400
   Add: Cheques issued but not presented for payment	50
   Interest collected by bank directly	120	170
   Less: Charges directly paid by the bank:
   Life insurance premium	64
   Pro-note	400
   Bank charges and interest charged by bank directly	14
   Cheques deposited but not collected by the bank	1,200	1,678
   Balance(Overdraft) as per Pass Book		1,108

10. (a) BANK RECONCILIATION STATEMENT as on March 31, 2018
    WITHOUT ADJUSTING CASH BOOK

    Particulars	Plus (Dr.)	Minus (Cr.)
    Balance as per Cash Book (Dr.)	40,000
    Cheques not encashed	10,000
    Cheques not cleared		15,000
    Interest on Investments	500
    Cheques deposited, not recorded in Cash Book	12,500
    Bank charges		100
    Balance as per Pass Book (Cr.)		47,900
    	63,000	63,000

    (b) BANK RECONCILIATION STATEMENT ADJUSTING CASH BOOK
    as on March 31, 2018

    Particulars	Plus (Dr.)	Minus (Cr.)
    Balance as per Cash Book (see Amended cash book)	52,900
    Cheques not encashed	10,000
    Cheques not cleared		15,000
    Balance as per Pass Book		47,900
    	62,900	62,900

    AMENDED CASH BOOK (BANK COLUMN ONLY)

    Particulars	Rs.	Particulars	Rs.
    To Balance b/d	40,000	By Bank charges	100
    To Inter. on Invest.	500	By Balance c/d	52,000
    To Cheque deposited	12,500
    	53,000		53,000