Benefits of preparing Bank Reconciliation Statement includes __.

It brings out any errors committed in preparation of cash book/bank pass book.

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Highlights under delay in clearance of cheques deposited but not credited

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Helps know the actual bank balance

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All of the above

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Solution

The correct option is D
All of the above

All of the above are the benefits of preparation of BRS.

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State whether the following Statements are True or False.

1) Bank Reconciliation Statement is prepared by Bank.
2) Bank Reconciliation Statement is prepared at the end of stipulated period.
3) Overdraft facility is allowed to proprietors personal account
4) Debit balance of Pass Book represents overdraft
5) Credit balance of Bank column of Cash Book represents the balance as per Cash book.
6) Bank charges debited by Bank increases bank balance in the Pass Book.
7) Interest credited in Pass Book is an income to the Customer.
8) Bank Reconciliation Statement is prepared to detect the errors the takes place in accounting

Q. Prepare Bank Reconciliation Statement from the following:

	₹
(i) Debit balance as per the Cash Book.	15,000
(ii) Cheques deposited but not cleared.	1,000
(iii) Cheques issued but not presented.	1,500
(iv) Bank interest.	200

Q. From the following information, prepare Bank Reconciliation Statement as on 31st March, 2019:

		₹
(i)	Bank overdraft as per Pass Book.	36,000
(ii)	Cheques issued but not presented for payment.	19,700
(iii)	Cheques deposited with bank but not collected.	25,000
(iv)	Cheques entered in Cash Book but not banked.	9,000
(v)	Directly deposited to bank by a customer.	11,000

On March 31, 2010, the cash book showed a balance of Rs. 3,700 as cash at bank, but the bank pass book made up to the same date showed that cheques for Rs. 700, Rs. 300 and Rs. 180 respectively had not presented had not presented for payment. Also, cheques amounting to Rs. 1,200 deposited into the account has not been credited. Prepare a bank reconciliation statement.

In which column (Plus or Minus) you will write the following while preparing bank reconciliation statement from the credit balance of cash book.

(i) Cheques paid into the bank but not collected.

(ii) Interest on bank overdraft.

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Benefits of preparing Bank Reconciliation Statement includes __.

The correct option is D All of the above All of the above are the benefits of preparation of BRS.

The correct option is D
All of the above

All of the above are the benefits of preparation of BRS.