Insurance Premium upto 31st March, 2017 paid by the Bank, Rs 500 not recorded in the Cash Book. While preparing BRS when starting point is cah book balance Rs. 500 will be subtracted.

True

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False

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Solution

The correct option is B False
Insurance Premium upto 31st March, 2017 paid by the Bank, Rs 500 not recorded in the Cash Book. While preparing BRS when starting point is cah book balance Rs. 500 will be subtracted.

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Q. Prepare a bank reconciliation statement from the following particulars and show the balance as per cash book.

(i)	Balance as per passbook on March 31, 2017 overdrawn Rs 20,000.
(ii)	Interest on bank overdraft not entered in the cash book Rs 2,000.
(iii)	Rs 200 insurance premium paid by bank has not been entered in the cash book.
(iv)	Cheques drawn in the last week of March, 2017, but not cleared till date for Rs 3,000 and Rs 3,500.
(v)	Cheques deposited into bank on February 2017, but yet to be credited on dated March 31, 2017 Rs 6,000.
(vii)	Wrongly debited by bank Rs 500.

Prepare a Bank Reconciliation Statement on 31st December 2009 for the following when overdraft as per pass book is Rs.20,000.

(1) Cheques issued,but not presented for payment Rs.25,000.

(2) Interest on bank overdraft charged by the bank,but not entered in cash book Rs.1,000.

(3) Cheque deposited but not collected Rs.22,000.

(4) Insurance premium Rs.500 paid by bank under standing order but not recorded in cash book.

The insurance premium paid is recorded as Rs 4,500 in cash book, however the same is shown as Rs 9,000 in passbook. What shall be the effect in BRS if starting point is cash book balance?

Q. From the following particulars a Bank Reconciliation Statement for the year ending on 31^stMarch 2011

(i) Bank balance as per Cash Book Rs 8,600
(ii) Cheques of Rs 4,000 issued but not presented for payment
(iii) Bank debited bank charges Rs 200
(iv) Cheque of Rs 2,800 deposited into the Bank but not Credited by Bank
(v) Bank paid Insurance Premium on our behalf directly Rs 2,500 not recorded in the Cash Book.
(vi) Bank Credited interest on investment Rs 1,900 but not recorded in the Cash Book.

Q. When the overdraft as per cash book is the starting point, a cheque for Rs 500 deposited into bank but not recorded in cash book will be _________.

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Insurance Premium upto 31st March, 2017 paid by the Bank, Rs 500 not recorded in the Cash Book. While preparing BRS when starting point is cah book balance Rs. 500 will be subtracted.

The correct option is B False Insurance Premium upto 31st March, 2017 paid by the Bank, Rs 500 not recorded in the Cash Book. While preparing BRS when starting point is cah book balance Rs. 500 will be subtracted.

The correct option is B False
Insurance Premium upto 31st March, 2017 paid by the Bank, Rs 500 not recorded in the Cash Book. While preparing BRS when starting point is cah book balance Rs. 500 will be subtracted.