Give on Word/Term or phrase which can substitute each of the following statements.

1) Statement showing the causes of disagreement between the balance of Cash Book and Pass Book
2) The account on which overdraft facility is allowed by Bank.
3) Excess of total of debit side over total of credit side of Cash Book Bank column.
4) An unfavorable balance shown by the Pass Book
5) A copy of customer’s account issued by the Bank
6) Booklet or a Statement which is used to record the banking transactions.
7) Credit balance of Bank Column of the Cash Book
8) Refusal by Bank to make the payment of cheque

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Solution

(1) Statement showing the causes of disagreement between the balance of Cash Book and Pass Book- Bank Reconciliation Statement

Explanation:
A Bank Reconciliation Statement is a statement that shows the causes of disagreement between the balances of both the books. It is a statement that is prepared to list out the reasons of differences between the two books and to reconcile the balances of both the books.

(2) The account on which overdraft facility is allowed by Bank- Current Account

Explanation:
Current account is the account on which overdraft facility is allowed by a bank. This facility is provided to the current account holders according to the business needs. It allows a trader to withdraw excess amounts over the amount deposited in the bank account up to a prescribed limit.

(3) Excess of total of debit side over total of credit side of Cash Book Bank column- Bank Balance

Explanation:
The excess of the total of debit side over the total of credit side of the Cash Book Bank column indicates the bank balance, which means it shows the amount deposited in the Bank A/c. Receipts are recorded on the debit side of the Cash Book and payments on the credit side of the Cash Book. Hence, the excess of debit side, i.e. (the difference between the receipts side and the credit side), shows the bank balance of a firm/business.

(4) An unfavourable balance shown by the pass book- Overdraft

Explanation:
Unfavourable balance as per the Pass Book means that the debit side of the Pass book, i.e. withdrawal side exceeds its credit side (deposits side). Thus, debit balance as per pass book indicates the amount that has been withdrawn in excess of deposits and is termed as overdraft.

(5) A copy of customer’s account issued by the Bank- Pass Book or Bank Statement

Explanation:
A copy of a customer’s account issued by a bank to the customer, in order to inform him/her about the transactions and balances in the account, is known as a Bank Statement or Pass Book. It is the copy of the ledger account maintained by the bank to record the transactions of its clients.

(6) Booklet or a Statement which is used to record the banking transactions- Pass Book or Bank Statement

Explanation:
A Pass Book or a Bank Statement is the booklet that is used to record the banking transactions of a business. Each customer is issued a separate Pass Book by a bank in which all transactions of the business are recorded.

(7) Credit balance of Bank Column of the Cash Book– Overdraft

Explanation:
Credit balance as per the Cash Book means overdraft balance. This balance indicates that the payment amount exceeds the receipts amount. When the credit side of the Cash Book, i.e. payments side exceeds its debit side (receipts side), then the balance is termed as Overdraft balance or Credit balance as per the Cash Book.

(8) Refusal by Bank to make the payment of cheque- Dishonour of cheque

Explanation:
A cheque is dishonoured when it is presented to a bank for payment and due to some reasons, the bank cannot honour it or refuses to pay the amount provided in the cheque.

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Similar questions

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. Give one word or term or phrase which can substitute each of the following statement.
A statement which is prepared so as to agree the bank balance as shown by the pass book with the bank balance as shown by the bank column of the cash book.

Q. Bank column of cash book showed bank balance of

R s . 9950

. While reconciling the bank balance it was noticed that a cheque issued and paid by the bank

R s . 5100

was wrongly shown on the debit side of bank column as

R s . 510

, bank charges amounting to

R s . 210

, LIC payment of

R s . 1200

made by the bank as per standing instruction were not accounted in the cash book. Find the adjusted balance of cash as per cash book.

Q. Write the most appropriate word / term / phrase which can substitute each of the following statement:

1. Person who maintains petty cash book.
2. A bank account which the businessman prefers to open.
3. Petty cash book in which the payment side is ruled in suitable columns.
4. Subsidiary book in which only credit purchase of goods is recorded.
5. Subsidiary book in which return of goods sold on credit is recorded.
6. Book in which cash discount received and allowed is recorded.
7. Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts.
8. A note issued by buyer to seller giving full details of goods returned.
9. Note issued by seller on receipt of defective goods from customer.
10. Signing on the back of the cheque to transfer its ownership.
11. An extract of customer’s account maintained by bank.
12. A type of cheque where the holder is paid the amount across the counter of the bank.
13. Bank on whom a cheque is drawn.
14. Excess of bank withdrawal over bank deposits.
15. Document used for depositing cash or cheque into the bank.

State whether the following statements are TRUE or FALSE :

1. Total of payments side can be greater than total of receipts side in case of bank column.
2. Purchase of asset or stationery on credit is recorded in purchase book.
3. When goods are returned by buyer to seller, buyer sends a debit note.
4. Cheque received and deposited into bank on the same day is a contra entry.
5. Simple petty cash book is not very popular.
6. Interest on overdraft charged by bank is recorded in the cash column.
7. It is not necessary to record dishonor of cheques in the cash book.
8. Cheque book facility is available for fixed deposit account.
9. Businessman generally operates savings bank account.
10. A cash book is both a journal as well as ledger.
11. Cash book is a book of original entry.
12. Cash discount allowed is recorded on the debit side of cash book
13. Credit transactions are never recorded in cash book.
14. Endorsed cheques are always recorded on the payment side in the bank column.
15. A person who endorses the cheque is known as endorser.

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