Which of the following statements is/are INCORRECT in the context of the Bank Reconciliation Statement? (i) When balance as per the Pass Book is the starting point, direct deposits by customers are added. (ii) When balance as per the Pass Book is the starting point, uncollected cheques are added. (iii) When balance as per the Cash Book is the starting point, unpresented cheques are added.
Only (i)
The correct answer is option 3. Statement (i) is incorrect because when the Pass Book balance is the starting point, uncollected cheques are deducted, not added. Direct deposits by customers would indeed be added. Statements (ii) and (iii) are correct in their respective contexts, as they describe adjustments in the reconciliation process.
Similar Questions
When starting balance is debit, i.e., favourable balance as per cash book, identify which of the following transactions will be added?
When Bank Reconciliation Statement is started with favourable balance as per cash book, which of the following will be added?
A credit balance in the bank passbook indicates a/an ___________ balance and a debit balance in the cash book indicates a/an ____________ balance.
Mr. A draws a 6-month trade bill on B for Rs. 25,000 on 1 January 2021. After holding the bill for 2 months. A decided to discount the bill with the bank at the rate of 10% p.a. The amount of discount on the bill is ______________ approximately (select the answer with the closest value).
In amended cash book, which of the following will be recorded?
Under the single-entry system, when rent is paid,
(i) it will be recorded in the Cash Book
(ii) entry will be made in the Rent account
Which of the above statements is/are true?
The objective of preparing a Bank Reconciliation Statement is to ______.
If the balance as per Cash Book is Rs.5,800; cheques amounting to Rs.2,000 are issued but not yet presented; cheques of Rs.1,500 sent for collection, but not yet collected, and an amount of Rs.200 is wrongly debited by the bank, what will be the balance as per Pass Book?
Important Questions from Bank Reconciliation statement
A Bank Reconciliation Statement is a
While preparing Bank Reconciliation Statement, balance as per Passbook will have to be _____ or balance as per Cashbook _____ by the amount of direct payment by customers into Trader’s A/c with the banker.
When starting balance is debit, i.e., favourable balance as per cash book, identify which of the following transactions will be added?
When Bank Reconciliation Statement is started with favourable balance as per cash book, which of the following will be added?
A credit balance in the bank passbook indicates a/an ___________ balance and a debit balance in the cash book indicates a/an ____________ balance.
