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Bank Reconciliation Quiz Q31–Q40

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Questions

Q31. Deposit in Transit will be ______ while preparing BRS.

Answer: Added in bank balance

Solution: A deposit in transit is recorded in the company's cash book but not yet reflected in the bank statement. To reconcile the bank statement to the cash book, deposits in transit are added to the bank balance.

Q32. Unpresented cheques are also referred as:

Answer: Outstanding Cheques

Solution: Cheques issued by the company but not yet presented to the bank for payment are called unpresented or outstanding cheques. They reduce the cash book balance but are not yet shown in the bank statement.

Q33. Bank charges Rs. 5000 not recorded; adjustment in cash book by:

Answer: Credit in cash book

Solution: Bank charges reduce the company's bank balance. To record bank charges not yet entered, the cash book (bank column) is credited, decreasing the cash book balance to match the bank statement.

Q34. Bank reconciliation is not a:

Answer: Ledger Account

Solution: A bank reconciliation statement is a memorandum or reconciliation record that explains differences between the cash book and bank statement. It is not a ledger account; it does not record transactions but reconciles balances.

Q35. Favourable Balance means:

Answer: Credit balance in bank statement

Solution: A favourable bank balance means the bank owes money to the company. On the bank (pass) book this appears as a credit balance (deposits/positive balance). In the cash book, a favourable balance is shown as a debit (asset). The option that best represents a favourable bank position is a credit balance in the bank statement.

Q36. Credit balance in Pass book means:

Answer: Bank overdraft

Solution: A credit balance in the pass book indicates that the account is overdrawn (the bank has a claim on the customer). This is commonly described as a bank overdraft from the customer's perspective.

Q37. Cheque returned by bank showing technical reason is known as:

Answer: Dishonoured Cheque

Solution: A cheque returned by the bank for technical reasons (insufficient funds, signature mismatch, etc.) is called a dishonoured cheque. A stale cheque is one presented after its validity period; a crossed cheque is a cheque with crossing instructions.

Q38. Outstanding Cheque is the missing entry of:

Answer: Pass Book

Solution: An outstanding cheque has been recorded in the company's cash book (cheque issued) but not yet presented to the bank, so it is missing from the pass book (bank statement) and must be deducted from the bank balance during reconciliation.

Q39. Unfavourable Bank Balance means:

Answer: Debit Balance in Pass Book

Solution: An unfavourable bank balance indicates the company is overdrawn. On the pass book (bank statement) this appears as a debit balance (bank's claim on the customer). This is the opposite of a favourable (credit) balance.

Q40. Which of the following is an error of Commission?

Answer: A purchase of 7400 was wrongly posted in ledger

Solution: An error of commission occurs when an entry is made but posted to the wrong account (e.g., posting a purchase to an incorrect ledger account). Omitting a sale is an error of omission; debiting repair to assets may be a classification error depending on context.

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