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.
Important Questions from Bank Reconciliation statement
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).
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?
The objective of preparing a Bank Reconciliation Statement is to ______.
