Direct Payments Made by Bank
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A company wrote a cheque for Rs 760 and it cleared the bank for Rs 670. However, the company recorded the cheque in its cash book as Rs 760. How is the difference of Rs 90 handled on the bank reconciliation?
Not entered as it only affects the bank statement
Debit the bank statement
Credit the cash book by Rs 90
Debit the cash book by Rs 90
- True
- False
- Cannot be determined
- None of the above
Rs 60 has been subtracted in our pass book on account of fees for issuing of new cheque book. How shall it be treated at the time of preparation of BRS?
Rs 60 shall be added
Rs 60 shall be subtracted
Rs 120 shall be added
Rs 120 shall be added
The bank charged Rs 1, 000 as bank charges to a client & communicates the same to him. The accountant records it in the bank account in books. Later on, the bank realised that the charges were wrongly charged & corrects the same, but forgot to communicate the same to the client. If the accountant is starting with the bank balance as per bank account in books, what will be the treatment in Bank Reconciliation Statement to arrive at balance as per bank statement:
Subtracted Rs 1, 000
Add Rs 2, 000
None of the above
Add Rs 1, 000
Standing orders for insurance premium of Rs 15, 000 to be paid every month shall be _____
Debited in cash book
Credited in cash book
Entered in bank statement
None of the above
Which of the following needs to be debited in cash book, when they are reflected in pass book?
Bank charges
Interest debited
Interest credited
Clearing and processing charges
There were standing instructions given to bank for payment of Rs 1, 00, 000 per month for 5 months to a supplier. The bank paid the supplier Rs 1, 00, 000 in the 6th month also which the supplier returned after 15 days in the same month. How should this be treated in the bank reconciliation statement?
Rs 1, 00, 000 shall be subtracted in cash book
Rs 1, 00, 000 shall be added in cash book
Rs 2, 00, 000 shall be added in cash book
None
Mr. Ajay has taken an insurance policy from Bajaj Life Insurance Corporation & has given instruction to bank to pay the insurance premium monthly i.e. Rs 10, 000 by deducting the amount automatically from the account. The bank reconciliation statement was not prepared for 4 months by him & after 4 months the cash book & bank pass book showed a difference. What according to you could be the probability?
Amount in cash book is less by Rs 40, 000
Amount in cash book is more by Rs 40, 000
Amount in bank statement is more by Rs 40, 000
None of the above
While checking the bank statement against the cash book, you find that a direct debit for rent received from a tenant is missing from the cash book. How this is adjusted in the books?
Debit the rent account and credit the cash book
Debit the cash book and credit the rent income account
Not enter the direct debit as it only affects the bank statement
Debit the bank statement and credit the rent account
If starting point is cash book balance, deductions in bank pass book not given to effect in cash book are ___ while preparing BRS.
Added
Subtracted
Not required to be adjusted
None of the above