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Commerce Exam  >  Commerce Test  >  Accountancy Class 11  >  Test: Bank Reconciliation Statement - 1 - Commerce MCQ

Bank Reconciliation Statement - 1 - Commerce Accountancy Class 11 Free


MCQ Practice Test & Solutions: Test: Bank Reconciliation Statement - 1 (30 Questions)

You can prepare effectively for Commerce Accountancy Class 11 with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Bank Reconciliation Statement - 1". These 30 questions have been designed by the experts with the latest curriculum of Commerce 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 30 minutes
  • - Number of Questions: 30

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Test: Bank Reconciliation Statement - 1 - Question 1
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When check is not paid by the bank, it is called?

Detailed Solution: Question 1

  • Definition: When a check is not paid by the bank, it is known as being "dishonored."
  • Reasons for Dishonor: There are several reasons why a check may be dishonored, such as insufficient funds in the account, a mismatch in the signature, post-dated checks, or a stop payment request.
  • Consequences: Dishonored checks can lead to penalties, fees, and damage to the issuer's credibility.
  • Legal Implications: Writing a check that is dishonored can also lead to legal consequences, such as civil or criminal charges for check fraud.
  • Resolution: If a check is dishonored, the issuer is usually notified by the bank, and they may have the opportunity to cover the funds and reissue the check.

Test: Bank Reconciliation Statement - 1 - Question 2
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If balance as per Pass Book is the starting point, then uncollected cheques are: 

Detailed Solution: Question 2

  • Starting Point: Balance as per Pass Book
  • Uncollected Cheques: Cheques issued by the company but not yet presented to the bank for payment
  • Treatment in BRS: Uncollected cheques are added in the Bank Reconciliation Statement (BRS) to adjust the balance as per the company's records to the actual bank balance

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Test: Bank Reconciliation Statement - 1 - Question 3
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The Cash book showed an overdraft of Rs.1,500 but the pass book made up to same date should that cheques of Rs. 100, Rs. 50 and Rs. 125 had not been presented for payment and a cheque of Rs. 400 had not been cleared. The balance as per the Cash Book will be:

Detailed Solution: Question 3

Start with the overdraft as per the Cash Book: Rs. 1,500 (overdraft means a negative balance).

Add the cheques that have not been presented for payment:

  • Rs. 100
  • Rs. 50
  • Rs. 125

Total of cheques not presented: Rs. 100 + Rs. 50 + Rs. 125 = Rs. 275

Subtract the cheque that has not been cleared: Rs. 400

Now, let's perform the calculation step-by-step:

  • Starting overdraft: Rs. 1,500
  • Add cheques not presented: Rs. 275
  • Subtract cheque not cleared: Rs. 400

Adjusted Cash Book balance = Overdraft + Cheques not presented - Cheque not cleared

Adjusted Cash Book balance = (-1500) + 275 - 400

Performing the calculation:

Adjusted Cash Book balance = -1500 + 275 - 400
Adjusted Cash Book balance = -1500 + 275 = -1225
Adjusted Cash Book balance = -1225 - 400 = -1625

Thus, the balance as per the Cash Book after adjustment is an overdraft of Rs. 1,625.

The correct option is: Rs. 1,625

Test: Bank Reconciliation Statement - 1 - Question 4
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The balance as per passbook is Rs. 20,000, out of which Rs. 4,000 were directly deposited by a customer into the bank. Then the balance as per cash book is: 

Detailed Solution: Question 4

Given:

  • Balance as per passbook: Rs. 20,000
  • Direct deposit by a customer: Rs. 4,000

To find the balance as per the cash book, subtract the direct deposit from the passbook balance:

Balance as per cash book = Balance as per pass book - Direct deposit by customer

Balance as per cash book = 20,000 - 4,000

Balance as per cash book = 16,000

Test: Bank Reconciliation Statement - 1 - Question 5
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The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point: 

Detailed Solution: Question 5

  • Initial credit balance: The credit balance of Rs. 2,000 in the bank column of the cash book is carried forward as a debit balance, which means it is treated as an overdrawn amount.
  • Starting point: When the overdraft as per the passbook is taken as the starting point, it means we are considering the overdrawn amount as the initial balance.
  • Adjustment: Since the credit balance of Rs. 2,000 is carried forward as a debit balance, it means that Rs. 2,000 has already been deducted from the balance. Therefore, when considering the overdrawn amount as the starting point, an additional deduction of Rs. 2,000 needs to be made.
  • Final adjustment: The total deduction to be made will be Rs. 2,000 (initial deduction) + Rs. 2,000 (additional deduction) = Rs. 4,000.

Test: Bank Reconciliation Statement - 1 - Question 6
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Favourable balance as per Cash Book means:

Detailed Solution: Question 6

  • Definition: Favourable balance as per Cash Book means the balance that shows more cash in hand or at bank in the Cash Book compared to the Pass Book.
  • Reasoning: This situation occurs when there are outstanding deposits or un-presented cheques that have not yet been recorded in the Pass Book.
  • Identification: To identify a favourable balance as per Cash Book, you need to look for a debit balance in the bank column of the Cash Book.
  • Characteristics: The bank column of the Cash Book records all cash transactions related to the bank account, including deposits and withdrawals.
  • Outcome: A favourable balance in the Cash Book indicates that there are more funds available in the bank account than what is shown in the Pass Book, leading to a temporary surplus of cash.

Test: Bank Reconciliation Statement - 1 - Question 7
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When favourable balance as per cash book is the starting point, wrong debit by the bank to the firm will be:

Detailed Solution: Question 7

  • Starting Point: When the favorable balance as per the cash book is the starting point, we consider it as the correct balance to begin with.
  • Wrong Debit by Bank: If the bank makes a wrong debit to the firm, it means they have deducted more money from the firm's account than they should have.
  • Subtracted: In this case, we need to subtract the wrong debit amount from the favorable balance in the cash book to correct the balance.
  • Final Balance: By subtracting the wrong debit amount, we will arrive at the correct balance in the cash book, ensuring that the firm's financial records are accurate.

Test: Bank Reconciliation Statement - 1 - Question 8
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 A trader issued cheques worth Rs. 7,800 out of which cheques worth Rs. 6,500 only presented into bank then on reconciling the Cash Book with the Pass Book, the amount to be added will be : 

Detailed Solution: Question 8

  • Cheques issued by the trader = Rs. 7,800
  • Cheques presented into bank = Rs. 6,500
  • Amount not presented into bank = Rs. 7,800 - Rs. 6,500 = Rs. 1,300
  • When cheques worth Rs. 6,500 are presented into the bank, they will be deducted from the Cash Book
  • However, the cheques worth Rs. 1,300 that were not presented into the bank need to be added back to the Cash Book
  • Therefore, on reconciling the Cash Book with the Pass Book, the amount to be added will be Rs. 1,300

Conclusion:
The correct answer is A: Rs. 1,300

Test: Bank Reconciliation Statement - 1 - Question 9
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On 31.3.09 the balance of the cash book is Rs. 7,074 (credit) and Balance as per Bank statement is Rs. 3,159 (debit). On scrutiny it was found that the difference was due to cheques issued but yet not presented for payment. The Bank Balance as on 31.3.09 to be shown in Balance Sheet as :-

Detailed Solution: Question 9

Answer: Option a) As Bank Overdraft Rs. 3,159

Explanation:

  • Cash Book Balance (Credit) Rs. 7,074: Indicates the company’s book shows a positive balance, suggesting an overdraft.
  • Bank Statement Balance (Debit) Rs. 3,159: Reflects a negative bank balance (overdraft).
  • Reason for Difference: The discrepancy is due to cheques issued by the company but not yet presented for payment. These cheques reduce the bank balance but are not yet reflected in the bank statement.

Since the bank balance is negative (overdraft) as per the bank statement, the balance shown in the balance sheet should reflect this overdraft of Rs. 3,159.

Thus, the correct answer is a) As Bank Overdraft Rs. 3,159.

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 10
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 If we take balance as per Pass book which of the following will be deducted to get balance as per cash book :

Detailed Solution: Question 10

Deductions to get balance as per cash book


  • Interest given by bank: Interest given by the bank is added to the pass book balance but needs to be deducted from the cash book balance to reconcile the two.

    •  

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 11
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The balance as per Cash Book (overdraft ) is 1,500. Cheques for Rs. 400 were deposited but were not collected. The cheques issued but not presented were Rs. 100, Rs. 125, Rs. 50. Balance as per Pass Book is : 

Detailed Solution: Question 11

Correct Answer: Option B

Explanation: Balance as per Cash Book = - 1500

Cheque deposited = 400

Cheque issues were = 100 + 125 + 50

= 275

Balance as per Pass book = - 1500 + 100 + 50 + 125 - 400

= - 1625 

Test: Bank Reconciliation Statement - 1 - Question 12
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A Bank Reconciliation Statement is : 

Detailed Solution: Question 12

Bank Reconciliation Statement Explanation:


  • Definition: A Bank Reconciliation Statement is a statement prepared by the customer to reconcile the balance in the bank statement with the balance in the company's own records.


  • Purpose: The main purpose of preparing a Bank Reconciliation Statement is to ensure that the company's records match the bank's records and to identify any discrepancies or errors that need to be corrected.


  • Preparation: The Bank Reconciliation Statement is typically prepared by comparing the transactions recorded in the company's cash book with the transactions recorded in the bank statement. Any differences in the balances are then identified and adjusted accordingly.


  • Components: The Bank Reconciliation Statement includes items such as outstanding checks, deposits in transit, bank errors, and any other discrepancies between the company's records and the bank statement.


  • Importance: Reconciling the bank account regularly through a Bank Reconciliation Statement helps to ensure the accuracy of the company's financial records, detect errors or fraud, and maintain control over cash flow.

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 13
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When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be : 

Detailed Solution: Question 13

Overdraft as per the cash book means that the amount is overdrawn. A cheque of Rs 500 is deposited into the bank but not recorded in the cash book means that the balance of cash book shows a higher overdraft balance because if the entry of Rs 500 was made then the overdraft balance will get reduced by Rs 500.

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 14
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Unfavourable bank balance means :

Detailed Solution: Question 14

An unfavourable or negative balance means a credit balance in the cash book. This indicates that the account is overdrawn, meaning the account holder has taken out more money than they have in the bank, resulting in a credit balance. Therefore, "Unfavourable bank balance" refers to a credit balance in the cash book.

Test: Bank Reconciliation Statement - 1 - Question 15
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 The payment side of Cash Book is under cast by Rs. 250. If the starting point of BRS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book ?

Detailed Solution: Question 15

When overdraft as per pass book is the starting point, those items will be added which makes cash book balance smaller than the pass book balance.

Test: Bank Reconciliation Statement - 1 - Question 16
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Debit balance as per cash book Rs.2000
Cheques deposited but not cleared Rs. 100
Cheques issued but not presented Rs. 150
Bank allowed interest Rs. 50
Bank collected dividend Rs. 50
Balance as per Pass Book will be:  

Detailed Solution: Question 16

2000+150+50+50-100 = 2150

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 17
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The main purpose of preparing a bank reconciliation statement is? 

Detailed Solution: Question 17

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.

Test: Bank Reconciliation Statement - 1 - Question 18
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 Which of these types of errors are not detected during Bank Reconciliation’ :

Detailed Solution: Question 18

Errors not detected during Bank Reconciliation:


  • Cash embezzlement by cashier: Bank reconciliation only compares the transactions recorded in the company's books with those in the bank statement. It does not detect fraudulent activities like cash embezzlement by the cashier.

  • Cheques deposited but not credited by bank: This type of error can be detected during bank reconciliation as it involves comparing the deposits made by the company with the deposits recorded by the bank.

  • Casting mistakes in bank column of cash book: Casting mistakes in the bank column of the cash book can be identified during bank reconciliation as the totals are compared with the bank statement.

  • Interest or commission charged by the bank not accounted in cash book: Such errors can be detected during bank reconciliation as they involve comparing the bank charges on the statement with the company's records.

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 19
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Aman Brothers has an overdraft of Rs. 40,000 as per the Cash Book on 31 March. On 22 March, a cheque for Rs. 5,000 was issued to a supplier, but not presented for payment till 31 March. Dividend of Rs. 2,500 was directly credited to the bank on 27 March but was informed to Aman Brothers on 2 April. A cheque for Rs. 3,600 was deposited in the bank on 29 March, but payment was realised on 4 April. The overdraft as per passbook is:

Detailed Solution: Question 19

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 20
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Credit balance as per cash Book Rs. 10,000
Bank charged interest Rs. 150
Cheques issued but not presented for payment Rs. 2,500
Balance as per pass Book will be :  

Detailed Solution: Question 20

Calculation of Balance as per Pass Book

- Credit balance as per Cash Book: Rs. 10,000
- Bank charged interest: Rs. 150
- Cheques issued but not presented for payment: Rs. 2,500

Calculation:
- Opening balance (Credit balance as per Cash Book): Rs. 10,000
- Add: Bank charged interest: Rs. 150
- Less: Cheques issued but not presented for payment: Rs. 2,500

Balance as per Pass Book:
10,000 + 150 - 2,500
= Rs. 7,650

Therefore, the correct answer is A: Rs. 7,650.

Test: Bank Reconciliation Statement - 1 - Question 21
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In arriving at adjusted cash balance which of the following is not taken into account: 

Detailed Solution: Question 21

In arriving at the adjusted cash balance, the following is not taken into account:

The correct answer is that errors in the pass book are not considered when calculating the adjusted cash balance. Here’s a breakdown of the reasons:

  • Errors in the cash book: These are included in the reconciliation process.
  • Direct deposits: Amounts deposited directly by customers are accounted for.
  • Bank errors: Mistakes made by the bank can affect the balance but are not included in the adjusted cash balance calculation.

In summary, while various factors can lead to discrepancies between the cash book and the bank passbook, only errors in the passbook are excluded from the adjusted cash balance.

Test: Bank Reconciliation Statement - 1 - Question 22
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 The credit balance as per pass book of Mr. X was Rs. 65,600. Cheques issued but not presented for payment Rs. 75,800. Cheques deposited by one of the customers of the bank but wrongly credited in Mr. X account Rs. 20,600. The balance as per cash book will be:-

Detailed Solution: Question 22

Given:

  • Credit balance as per pass book: Rs. 65,600
  • Cheques issued but not presented for payment: Rs. 75,800
  • Cheques deposited by one of the customers but wrongly credited to Mr. X's account: Rs. 20,600

Steps to adjust the balance:

  1. Cheques issued but not presented for payment (Rs. 75,800):

    • These cheques have been recorded in the cash book (reducing the balance) but not yet in the pass book. To reconcile, we need to subtract this amount from the pass book balance.

  2. Wrong credit to Mr. X's account (Rs. 20,600):

    • This amount is in the pass book but should not be. To reconcile, we need to subtract this amount from the pass book balance.

Calculations:

A negative balance indicates an overdraft in the cash book.

Therefore, the balance as per the cash book is:

2. Rs. 30,800 overdraft

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 23
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 Bank balance shown in Trial Balance : 

Detailed Solution: Question 23

Explanation:



  • Bank balance shown in Trial Balance: The bank balance shown in the trial balance is the amount that is recorded as per the bank column of the cash book.

  • Balance as per pass book: This refers to the balance shown in the bank statement or passbook provided by the bank to the account holder.

  • Balance as per bank column of cash book: This is the balance recorded in the bank column of the cash book maintained by the business to track all banking transactions.

  • Balance as per purchase book: This is not relevant in this context as we are looking at the bank balance shown in the trial balance.

  • Both (a) and (b): This option could be valid if the bank balance shown in the trial balance is reconciled with both the passbook balance and the bank column of the cash book.


Based on the information provided, the correct answer is option b, which is the balance as per the bank column of the cash book. This balance is crucial for the business to ensure accurate financial reporting and management of funds.

Test: Bank Reconciliation Statement - 1 - Question 24
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If the balance as per Pass Book is the starting point, so the treatment of undercasting of receipt side of Cash Book will be :

Detailed Solution: Question 24

Explanation:



  • Starting Point: The balance as per the Pass Book is considered the starting point for reconciling the Cash Book with the Pass Book.

  • Treatment of Undercasting: When there is undercasting on the receipt side of the Cash Book, it means that some of the receipts are not recorded properly or are recorded at a lower amount.

  • Deducted: In this case, the undercast amount should be deducted from the balance as per the Pass Book. This adjustment will help bring the balance in the Cash Book in line with the Pass Book.

  • No Treatment: Ignoring the undercast amount will result in discrepancies between the Cash Book and the Pass Book balances.

  • Correct Answer: Therefore, the correct treatment for undercasting on the receipt side of the Cash Book is to deduct the undercast amount from the balance as per the Pass Book.

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 25
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A Bank Reconciliation Statement is prepared to Know the causes for the difference between:

Detailed Solution: Question 25

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.

Test: Bank Reconciliation Statement - 1 - Question 26
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 When Money is withdrawn from bank the bank: 

Detailed Solution: Question 26

Explanation:

  • When money is withdrawn from a bank, the bank:


    • Debits Customer's A/c: This means that the customer's account is reduced by the amount withdrawn.



Therefore, the correct answer is option B: Debits Customer's A/c.

Test: Bank Reconciliation Statement - 1 - Question 27
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 The balance as per Cash Book is Rs. 10,000 Cheques for Rs. 2,000 were issued but not presented for payment. What would be the balance as per Pass Book?

Detailed Solution: Question 27

Explanation:


  • Balance as per Cash Book: Rs. 10,000

  • Cheques issued but not presented: Rs. 2,000


Calculation:

  • Balance as per Cash Book: Rs. 10,000

  • Cheques issued but not presented: Rs. 2,000

  • Total: Rs. 12,000


Therefore, the balance as per Pass Book would be Rs. 12,000.

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 28
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 Overdraft as per Cash book means: 

Detailed Solution: Question 28

Explanation:



  • Credit balance in the cash book: Overdraft as per Cash book refers to the credit balance in the bank column of the cash book, indicating that the company has spent more money than it currently has in its bank account.

  • Credit balance in the bank column of the cash book: This balance represents the amount by which the company has overdrawn from its bank account.

  • Decrease in Liability: An overdraft does not result in a decrease in liability. Instead, it shows a negative balance in the bank account, which is a liability to the company.


Therefore, the correct answer is B: Credit balance in the bank column of the cash book.

Test: Bank Reconciliation Statement - 1 - Question 29
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 Balance shown by Cash Book Rs. 10,000
Cheques issued but not presented for payment Rs. 4,000
Cheques deposited but not yet collected Rs 3,000
Balance as per Pass Book will be :  

Detailed Solution: Question 29

Old NCERT

Test: Bank Reconciliation Statement - 1 - Question 30
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 For preparing Bank Reconciliation statement the documents statements required are:

Detailed Solution: Question 30

Documents required for preparing Bank Reconciliation statement:

  • A: Cash column of cash book and bank statement

  • B: Bank column of cash book and bank statement

  • C: Bank and cash column of the cash book

  • D: Bank statement


Detailed

  • When preparing a Bank Reconciliation statement, it is essential to have access to both the cash book and the bank statement.

  • Comparing the cash column of the cash book with the bank statement helps in identifying any discrepancies in the cash balance.

  • Similarly, comparing the bank column of the cash book with the bank statement helps in reconciling any differences in the bank balance.

  • Having access to both the cash and bank columns of the cash book ensures that all transactions are accurately recorded and reconciled with the bank statement.

  • Lastly, having the bank statement itself is crucial as it provides the official record of transactions made by the bank, which is necessary for reconciliation purposes.

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This test contains 30 MCQs on Bank Reconciliation Statement - 1 with detailed solutions for each question. It is part of the Accountancy Class 11 course on EduRev, designed to align with the current Commerce syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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