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The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:
- a)Reduce Rs. 1,000
- b)Add Rs. 1,000
- c)Add Rs. 2,000
- d)No treatment
Correct answer is option 'B'. Can you explain this answer?
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The bank charged Rs. 1,000 as bank charges to a client and communicate...
Bank Reconciliation Statement Treatment for Bank Charges Reversed but not Communicated to Client
When preparing a Bank Reconciliation Statement, the accountant must reconcile the bank balance as per the bank statement with the bank balance as per the books of accounts. In this scenario, the bank charged Rs. 1,000 as bank charges to a client, which was recorded in the books. However, the bank later realized the error and reversed the charges without informing the client.
To arrive at the balance as per the bank statement, the following treatment must be applied:
Add Rs. 1,000
- The bank charges were reversed by the bank, which means that the bank balance as per the bank statement will be higher by Rs. 1,000.
- However, since the reversal was not communicated to the client, the bank balance as per the books of accounts will not reflect this change.
- Therefore, to reconcile the two balances, the accountant must add Rs. 1,000 to the bank balance as per the books of accounts.
- This will result in the balance as per the bank statement and the balance as per the books of accounts being reconciled.
In summary, when bank charges are reversed but not communicated to the client, the accountant must add the amount of the reversal to the bank balance as per the books of accounts to arrive at the balance as per the bank statement.
When preparing a Bank Reconciliation Statement, the accountant must reconcile the bank balance as per the bank statement with the bank balance as per the books of accounts. In this scenario, the bank charged Rs. 1,000 as bank charges to a client, which was recorded in the books. However, the bank later realized the error and reversed the charges without informing the client.
To arrive at the balance as per the bank statement, the following treatment must be applied:
Add Rs. 1,000
- The bank charges were reversed by the bank, which means that the bank balance as per the bank statement will be higher by Rs. 1,000.
- However, since the reversal was not communicated to the client, the bank balance as per the books of accounts will not reflect this change.
- Therefore, to reconcile the two balances, the accountant must add Rs. 1,000 to the bank balance as per the books of accounts.
- This will result in the balance as per the bank statement and the balance as per the books of accounts being reconciled.
In summary, when bank charges are reversed but not communicated to the client, the accountant must add the amount of the reversal to the bank balance as per the books of accounts to arrive at the balance as per the bank statement.
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The bank charged Rs. 1,000 as bank charges to a client and communicate...
Actually here the bank debited the client's account wrongly so firstly bank reduces the balance by ₹1000 and later on bank get known about their mistake so bank reverses the entry and gives credit to customer account by ₹1000 ,means that bank adds the ₹ 1000 because the starting bal is balance as per passbook and hence due to reversing the entry the balance as per passbook and cash book get balanced...so the correct option is b)..add 1000
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The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect answer is option 'B'. Can you explain this answer?
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The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect 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 The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect 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 The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect answer is option 'B'. Can you explain this answer?.
The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect 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 The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect 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 The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect answer is option 'B'. Can you explain this answer?.
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The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The bank charged Rs. 1,000 as bank charges to a client and communicates the same to him. The accountant records it in the bank account in books. Later on the bank realizes that the charges were wrongly charged and reverses the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation statement to arrive at balance as per Bank statement:a)Reduce Rs. 1,000b)Add Rs. 1,000c)Add Rs. 2,000d)No treatmentCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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