State whether the following statement is True or False.
Bank Reconciliation Statement is prepared to detect the errors that take place to accounting.

True

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False

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Solution

The correct option is B False
False. Bank reconciliation statement is prepared to reconcile the balances as per cash book (bank column) and pass book (bank statement) by identifying the causes of differences between the two. It, in no way detects the errors that take place in accounting while book keeping.

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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

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Bank Reconciliation Statement is prepared by the Bank.

Q. State whether the following statement is True or False.
Bank reconciliation statement is prepared by the Account holder.

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Single sided errors affect only one account.

Q. State whether the following statement is True or False.
Bank Reconciliation Statement is prepared at the end of every month.

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State whether the following statement is True or False.Bank Reconciliation Statement is prepared to detect the errors that take place to accounting.

State whether the following statement is True or False.
Bank Reconciliation Statement is prepared to detect the errors that take place to accounting.