Bank Reconciliation Statement MCQ

1. Bank Reconciliation is the process of reconciling cash column of the cash book and bank column of the cash book.

2. There are 3 types of differences between cash book and pass book namely Timing, Transactions & Errors.

3. Adjusting the cash book for any errors and/or omissions before preparing bank reconciliation is optional when the reconciliation is done at the end of the financial year.

4. Debit balance in cash book is same as overdraft as per pass book.

5. Bank charges debited by the bank is an example of timing difference for the purposes of bank reconciliation.

6. Overcasting of the debit side of the cash book is an example of a difference that is due to error.

7. When we start bank reconciliation with a debit balance in cash book, then cheques issued but not yet presented should be added back to arrive at the balance as per pass book.

8. The bank charges charged by the bank should be deducted when bank reconciliation statement is being prepared starting from a credit balance of pass book.