We have compiled the NCERT MCQ Questions for Class 11 Accountancy Chapter 5 Bank Reconciliation Statement with Answers Pdf free download covering the entire syllabus. Practice MCQ Questions for Class 11 Accountancy with Answers on a daily basis and score well in exams. Refer to the Bank Reconciliation Statement Class 11 MCQs Questions with Answers here along with a detailed explanation.
Bank Reconciliation Statement Class 11 MCQs Questions with Answers
Choose the correct option.
Question 1.
When check is not paid by the bank, it is called?
(a) Honored
(b) Endorsed
(c) Dishonored
(d) a & b
Answer
Answer: (c) Dishonored
Question 2.
A bank reconciliation statement is prepared by?
(a) Banker
(b) Accountant of the business
(c) Auditors
(d) Registrar
Answer
Answer: (b) Accountant of the business
Question 3.
Bank reconciliation is not a?
(a) Reconcile records
(b) Memorandum statement
(c) Ledger account
(d) Procedure to provide cash book adjustments
Answer
Answer: (c) Ledger account
Question 4.
The balance on the debit side of the bank column of cash book indicates?
(a) The total amount has drawn from the bank
(b) Cash at bank
(c) The total amount overdraft in the bank
(d) None of above
Answer
Answer: (b) Cash at bank
Question 5.
Bank statement also called?
(a) Pass book
(b) Cash book
(c) Credit book
(d) Debit book
Answer
Answer: (a) Pass book
Question 6.
The main purpose of preparing a bank reconciliation statement is?
(a) To know the bank balance
(b) To know the balance of bank statement
(c) To correct the cash book
(d) To identify causes of difference between cash book and bank statement
Answer
Answer: (d) To identify causes of difference between cash book and bank statement
Question 7.
Bank reconciliation statement is?
(a) Part of bank statement
(b) Part of the cash book
(c) A separate statement
(d) a sub-division of journal
Answer
Answer: (c) A separate statement
Question 8.
Uncollected checks are also known as?
(a) Outstanding checks
(b) Uncleared checks
(c) Outstation checks
(d) Both b & c
Answer
Answer: (d) Both b & c
Question 9.
Favorable balance means?
(a) Credit balance in the cash book
(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) both b and c
Answer
Answer: (d) both b and c
Question 10.
Unfavorable balance means?
(a) Credit balance in the cash book
(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) Debit balance in petty cash book
Answer
Answer: (a) Credit balance in the cash book
Question 11.
Farkhanda Jabeen Ltd. receives a check for Rs. 100 records it in cash book and deposits it on the same day. A statement sent by the bank that day does not show this Rs. 100. How is this shown on the bank reconciliation statement?
(a) As an uncredited deposits added to the bank statement balance
(b) As an uncredited deposits deducted from the bank statement balance
(c) As an Unpresented check added to the bank statement balance
(d) As an Unpresented check deducted from the bank statement balance
Answer
Answer: (a) As an uncredited deposits added to the bank statement balance
Question 12.
A bank reconciliation statement is prepared by?
(a) Internal auditor
(b) Business accountant
(c) Businessman
(d) All of These
Answer
Answer: (d) All of These
Question 13.
Which of the following items is not a reason for difference between bank balance as per cash book and pass book?
(a) Dishonored check
(b) Cheques deposited but not yet cleared
(c) Credit sales
(d) Cheques issued but not yet presented for payment
Answer
Answer: (c) Credit sales
Question 14.
Credit balance in bank pass book means?
(a) Bank overdraft
(b) Bank balance
(c) Balance as per cash book
(d) None
Answer
Answer: (b) Bank balance
Question 15.
A check that bears a date latter than date of issue is called?
(a) Anti dated check
(b) Post-dated check
(c) Dishonored check
(d) Outdated check
Answer
Answer: (b) Post-dated check
Question 16.
The main function of a commercial bank is to?
(a) Barrow and lend money
(b) Only barrow money
(c) Only lend money
(d) None of theses
Answer
Answer: (a) Barrow and lend money
Question 17.
When a cheque is returned by the bank showing some technical reason is known as?
(a) Honor of the cheque
(b) Balance of account
(c) Dishonor of the cheque
(d) None of these
Answer
Answer: (c) Dishonor of the cheque
Question 18.
The outstanding check is the missing entry of?
(a) Cash book
(b) Passbook
(c) both
(d) None
Answer
Answer: (b) Passbook
Question 19.
Directly collections of bank are to be ___________ in cash book?
(a) Dr
(b) Cr
(c) both
(d) None
Answer
Answer: (a) Dr
Question 20.
The cheque which is issued to creditor but is not presented for payment is called?
(a) Uncredited cheque
(b) Outstanding cheque
(c) Omitted cheque
(d) Dishonored cheque
Answer
Answer: (b) Outstanding cheque
Question 21.
A Bank Reconciliation Statement is:
(a) A part of cash book
(b) A part of pass book
(c) A statement prepared by bank
(d) A statement prepared by a customer
Answer
Answer: (d) A statement prepared by a customer
Question 22.
A pass book is a copy of
(a) A customer’s account in the bank’s books
(b) Cash book relating to bank column
(c) Cash book relating to cash column
(d) Firm’s receipts and payments
Answer
Answer: (a) A customer’s account in the bank’s books
Question 23.
A bank reconciliation statement is prepared with the balance of:
(a) Cash book
(b) Pass book
(c) Either cash book or pass book
(d) Neither cash book nor pass book
Answer
Answer: (c) Either cash book or pass book
Question 24.
Unfavourable bank balances means:
(a) Credit balance in the cash book
(b) debit balance in the pass book
(c) Debit balance in the cash book
(d) Favourable balance in the cash book
Answer
Answer: (b) debit balance in the pass book
Question 25.
The main purpose of preparing a bank reconciliation statement is?
(a) To know the bank balance
(b) To know the balance of bank statement
(c) To correct the cash book
(d) To identify causes of difference between cash book and bank statement
Answer
Answer: (d) To identify causes of difference between cash book and bank statement
Question 26.
In cash book, the favourable balance indicates
(a) Credit Balance
(b) Debit Balance
(c) Bank Overdraft
(d) Adjusted Balance
Answer
Answer: (b) Debit Balance
Question 27.
On the bank statement, cash deposited by the company is known as
(a) Credit
(b) Debit
(c) Liability
(d) Expenses
Answer
Answer: (a) Credit
Question 28.
Bank reconciliation statement compares a bank statement with _________
(a) Cash payment journal
(b) Cash receipt journal
(c) Financial statements
(d) Cashbook
Answer
Answer: (d) Cashbook
Question 29.
What is “Deposit in transit” in bank reconciliation?
(a) Added to Bank Balance
(b) Subtracted From Bank Balance
(c) Subtracted From the Cash Book Balance
(d) Added to Cashbook Balance
Answer
Answer: (a) Added to Bank Balance
Question 30.
‘NSF’ marked in cheque sent back by the bank indicates
(a) Cheque has been forged
(b) A bank couldn’t verify the identity
(c) No sufficient money
(d) A cheque cannot be cashed because it’s illegal
Answer
Answer: (c) No sufficient money
Question 31.
A bank reconciliation statement is prepared by
(a) Creditors
(b) Bank
(c) Account holder in a bank
(d) Debtors
Answer
Answer: (c) Account holder in a bank
Question 32.
A bank reconciliation statement is prepared with the balance
(a) Passbook
(b) Cash book
(c) Both passbook and cash book
(d) None of these
Answer
Answer: (c) Both passbook and cash book
Question 33.
Passbook is a copy of:
(a) Customer account
(b) Bank column of cash book
(c) Cash column of cash book
(d) Receipts and payments
Answer
Answer: (a) Customer account
Question 34.
Unfavourable bank balance means
(a) Credit balance in passbook
(b) Credit balance in cash book
(c) Debit balance in cash book
(d) None of these
Answer
Answer: (b) Credit balance in cash book
Question 35.
Favourable bank balance means :
(a) Credit balance in the cash book
(b) Credit balance in passbook
(c) Debit balance in the cash book
(d) Both (b) and (c)
Answer
Answer: (d) Both (b) and (c)
Question 36.
A bank reconciliation statement is mainly prepared for
(a) Reconcile the cash balance of the cash book
(b) Reconcile the difference between the bank balance shown by the cash book and bank passbook
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (b) Reconcile the difference between the bank balance shown by the cash book and bank passbook
Fill in the blanks
Question 1.
Passbook is a copy of ………………. as it appears in the ledger of the bank.
Answer
Answer: customer account
Question 2.
When money is withdrawn from the bank, the bank ……………… the account of the customer.
Answer
Answer: debit
Question 3.
Normally, the cash book shows a debit balance, passbook shows ……………….. balance.
Answer
Answer: credit
Question 4.
Favourable balance as per the cash book means …………….. balance in the bank column of the cash book.
Answer
Answer: debit
Question 5.
If the cash book balance is taken as starting point the items which make the cash book balance smaller than the passbook must be ………………. for the purpose of reconciliation.
Answer
Answer: added
Question 6.
If the passbook shows a favourable balance and if it is taken as the starting point for the purpose of bank reconciliation statement then cheques issued but not presented-for payment should be ……………… to find out cash balance.
Answer
Answer: deducted
Question 7.
When the cheques are not presented for payment, favourable balance as per the cash book is ……………… than that of the passbook.
Answer
Answer: lower/less
Question 8.
When a banker collects the bills and credits the account passbook overdraft shows ……………….. balance.
Answer
Answer: less/lower
Question 9.
If the overdraft as per the passbook is taken as the starting point, the cheques issued but not presented are to be ………………… in the bank reconciliation statement.
Answer
Answer: added
Question 10.
When the passbook balance is taken as the starting point items which makes the passbook balance ……………… than the balance in the cash book must be deducted for the purpose of reconciliation.
Answer
Answer: higher
State whether each of the following statements is True or False.
Question 1.
Passbook is the statement of account of the customer maintained by the bank.
Answer
Answer: True
Question 2.
A business firm periodically prepares a bank reconciliation statement to reconcile the bank balance as per the cash book with the passbook as these two show different balances for various reasons.
Answer
Answer: True
Question 3.
Cheques issued but not presented for payment will reduce the balance as per the passbook.
Answer
Answer: False
Question 4.
Cheques deposited but not collected will result in increasing the balance of the cash book when compared to passbook.
Answer
Answer: True
Question 5.
Overdraft as per the passbook is less than the overdraft as per cash book when there are cheques deposited but not collected by the banker.
Answer
Answer: False
Question 6.
The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank.
Answer
Answer: True
Question 7.
Favourable bank balance as per the cash book will be less than the bank passbook balance when there are unpresented cheques for payment.
Answer
Answer: True
Question 8.
Direct collections received by the bank on behalf of the customers would increase the balance as per the bank passbook when compared to the balance as per the cash book.
Answer
Answer: True
Question 9.
When payments made by the bank as per the standing instructions of the customer, the balance in the passbook will be more when compared to the cash book.
Answer
Answer: False
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