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Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:
(i) It helps the management in checking the accuracy of entries recorded in Cash Book.
(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.
(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.
Identify the correct statement/statements:
- a)(i) and (iii)
- b)(ii) and (iii)
- c)(i), (ii) and (iii)
- d)(i) only
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements with regard to the need for prepari...
Bank reconciliation statements ensure payments have been processed and cash collections have been deposited into the bank. The reconciliation statement helps identify differences between the bank balance and book balance, in order to process necessary adjustments or corrections.
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Consider the following statements with regard to the need for prepari...
Bank Reconciliation Statement
The bank reconciliation statement is a statement prepared by a business to reconcile the balances of its cash book and bank statement. It is necessary to prepare this statement for several reasons, which are explained below:
Accuracy of Cash Book Entries
One of the primary reasons for preparing a bank reconciliation statement is to check the accuracy of entries recorded in the cash book. The cash book is a record of all cash and bank transactions of a business, but it may not always reflect the correct balance due to various factors such as timing differences and errors. By comparing the cash book balance with the bank statement balance, any discrepancies can be identified and corrected. This helps ensure the accuracy of the cash book and the financial records of the business.
Tracking of Cheques and Clearances
Another important aspect of bank reconciliation is to keep track of cheques sent to the bank for collection. The bank reconciliation statement allows the business to monitor the progress of cheques and identify any undue delays in their clearance. If a cheque has not been cleared for an extended period, it may indicate an issue that needs to be addressed, such as a lost cheque or a problem with the bank's processing. By promptly identifying such delays, the business can take appropriate action to rectify the situation.
Identification of Errors
The bank reconciliation statement also helps in identifying errors that may have been committed either in the cash book or the bank statement. Discrepancies between the two balances may arise due to errors in recording transactions, such as incorrect amounts or double entries. By reconciling the two balances, these errors can be identified and rectified, ensuring the accuracy of the financial records. Additionally, the bank reconciliation statement may uncover bank charges, interest earned, or other items that were not recorded in the cash book, allowing for their proper inclusion in the financial statements.
In conclusion, the bank reconciliation statement is essential for several reasons. It helps in checking the accuracy of entries recorded in the cash book, tracking the progress of cheques sent to the bank, and identifying errors in both the cash book and the bank statement. By reconciling the two balances, businesses can ensure the accuracy of their financial records and maintain effective control over their cash and bank transactions. Therefore, option (c) - (i), (ii), and (iii) - is the correct answer.
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Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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ample number of questions to practice Consider the following statements with regard to the need for preparing the Bank Reconciliation Statement:(i) It helps the management in checking the accuracy of entries recorded in Cash Book.(ii) It helps in keeping the track of cheques etc., sent to the bank for collection. Any undue delay in the clearance of cheques can be noticed.(iii) It helps in bringing out any errors that may have been committed either in cash book or in the pass book.Identify the correct statement/statements:a)(i) and (iii)b)(ii) and (iii)c)(i), (ii) and (iii)d)(i) onlyCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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