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Byju's Answer
Standard XII
Business Studies
Decentralisation
In processing...
Question

In processing cheques which of the following I/O techniques have banks traditionally followed?

A
OCR
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B
MICR
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C
Barcode
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D
VRT
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Solution

The correct option is A MICR

The MICR encoding, called the MICR line, is at the bottom of cheques and other vouchers and typically includes the document-type indicator, bank code, bank account number, cheque number, cheque amount, and a control indicator.

Every bank branch is given a unique MICR code and this helps the RBI to identify the bank branch and speed up the clearing process


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Q.

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.

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
Q. From the following information, prepare Bank Reconciliations Statement as on 31st March, 2018:
₹
(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
Q. On 31st December, 2014 my Cash Book showed a credit balance of ₹ 8,800. I had paid into Bank three cheques amounting to ₹ 6,000 on 24th December of which I found ₹ 3,200 have been credited in the Pass Book under date 5th January 2015. I had issued cheques amounting to ₹ 8,000 before 31st December of which I found ₹ 2,500 have been debited in the Pass Book after 1st January 2015. I find a debit of ₹ 50 in respect of bank charges in the Pass Book which I have adjusted in the Cash Book on 31st Dec. There is a credit of ₹ 360 for interest on securities in the Pass Book which remains to be adjusted. A cheque of ₹ 1,200 deposited into bank has been dishonoured.
Prepare Bank Reconciliation Statement as on 31st Dec. 2014.
Q. On 31st March, 2019, Pass Book of Shri Bhama Shah shows debit balance of ₹ 10,000. From the following particulars, prepare Bank Reconciliation Statement.
(i) Cheques amounting to ₹ 8,000 drawn on 25th March of which cheques of ₹ 5,000 cashed in April, 2019.
(ii) Cheques paid into bank for collection of ₹ 5,000 but cheques of ₹ 2,200 could only be collected in March 2019.
(iii) Bank charges ₹ 25 and dividend of ₹ 350 on investment collected by bank could not be shown in the Cash Book.
(iv) A cheque of ₹ 600 debited in the Cash Book omitted to be banked.
(v) Bill of ₹ 5,000 discounted with Bank but was not recorded in the Cash Book.
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