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A Bank Reconciliation Statement is prepared to Know the causes for the difference between:
  • a)
    The balance as per cash column of Cash Book and the Pass book
  • b)
    The balance as per bank column of Cash Book and the Pass book
  • c)
    The balance as per bank column cash column of Cash book and balance as per cash column of Cash Book
  • d)
    None
Correct answer is option 'B'. Can you explain this answer?
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A Bank Reconciliation Statement is prepared to Know the causes for the...
Bank Reconciliation Statement


  • Cash Book vs. Pass Book: The first step in preparing a Bank Reconciliation Statement is to compare the balance as per the cash column of the Cash Book with the balance as per the Pass Book. Discrepancies can arise due to outstanding checks, deposits in transit, bank charges, or errors in recording transactions.


  • Bank Column vs. Pass Book: Next, the balance as per the bank column of the Cash Book is compared with the balance as per the Pass Book. Discrepancies in this comparison can be caused by interest earned, bank fees, bank errors, or unrecorded transactions.


  • Bank Column vs. Cash Column: Finally, the balance as per the bank column of the Cash Book is compared with the balance as per the cash column of the Cash Book. This step helps to identify any errors in recording transactions or miscalculations that may have occurred.


Conclusion


  • By reconciling these different balances, discrepancies between the Cash Book and the Pass Book can be identified and resolved. This process ensures the accuracy of financial records and helps to maintain the integrity of the company's accounts.

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A Bank Reconciliation Statement is prepared to Know the causes for the difference between:a)The balance as per cash column of Cash Book and the Pass bookb)The balance as per bank column of Cash Book and the Pass bookc)The balance as per bank column cash column of Cash book and balance as per cash column of Cash Bookd)NoneCorrect answer is option 'B'. Can you explain this answer?
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A Bank Reconciliation Statement is prepared to Know the causes for the difference between:a)The balance as per cash column of Cash Book and the Pass bookb)The balance as per bank column of Cash Book and the Pass bookc)The balance as per bank column cash column of Cash book and balance as per cash column of Cash Bookd)NoneCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Bank Reconciliation Statement is prepared to Know the causes for the difference between:a)The balance as per cash column of Cash Book and the Pass bookb)The balance as per bank column of Cash Book and the Pass bookc)The balance as per bank column cash column of Cash book and balance as per cash column of Cash Bookd)NoneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Bank Reconciliation Statement is prepared to Know the causes for the difference between:a)The balance as per cash column of Cash Book and the Pass bookb)The balance as per bank column of Cash Book and the Pass bookc)The balance as per bank column cash column of Cash book and balance as per cash column of Cash Bookd)NoneCorrect answer is option 'B'. Can you explain this answer?.
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