Question

It is not true for bank reconciliation statement __________.

• A. that the bank balance as per cash book and pass book are same
• B. prepared on a particular date
• C. a single transaction is recorded both in bank pass book as well as bank cash book.
• D. the transaction in the cash book one recorded as per client new point.

Answer 1

Answer: (A)

that the bank balance as per cash book and pass book are same

Bank reconciliation statement is prepared to Reconcile the differences between the balances as per cash book (bank column) and passbook (bank statement) by identifying the causes of differences between the two for a particular period. If the two balances match, then there is no need for a bank reconciliation statement. So, it is true that for a bank reconciliation statement, a single transaction is recorded both in bank passbook and bank cash book or the transactions recorded in cash book are from the point of view of the client/ customer and it is prepared on a particular date. But, it is not true that the balance as per bank column in the cash book and passbook are same for preparing bank reconciliation statement because if the two balances are same, then bank reconciliation statement is not required.