Which of the following shall be taken to be a base for preparation of bank reconciliation statement?

Closing balance Cash Ledger Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Closing balance of Cash column of two columnar cash book

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Closing balance of Bank column of two columnar cash book

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Closing balance of Bank column of two columnar cash book

Such balance shall be taken from bank column of two column cash book. The double column cash book (also known as two column cash book) has two money columns on both debit and credit sides – one to record cash transactions and one to record bank transactions.

Suggest Corrections

Similar questions

The accountant of a firm is required to prepare a bank reconciliation statement for the month of March. The opening balance of cash on 1st March was Rs 1,20,000 while the opening balance as per bank column of cash book was Rs 9,50,000. The closing balance of cash as on 31st March was Rs 90,000 while the closing balance as per bank column of cash book was Rs 15,40,000. Which of the following shall be taken by him for starting the preparation of BRS?

Balance of bank account for preparation of bank reconciliation statement shall be taken from ___ for matching the same with cash book.

From the following Cash Book (with cash and Bank columns) prepare necessary Ledger Accounts and balance them.

Cash Book (with Cash & Bank Columns)
Dr.						Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date		Particulars	L.F	Cash Rs	Bank Rs
2011 Apr.					2011 Apr.
1	To Balance b/d		400	1,000	1		By Purchases A/c		700
2	To Ram ‘s A/c		980		3		By Rent A/c			200
3	To Sales A/c			4,000	10		By Sita’ s A/c		300
7	To Interest A/c		120		8		By Salaries A/c			450
10	To Sales A/c		500		10		By Purchases A/c			1,350
25	To Bank A/c		2,000		30		By Cash A/c			2,000
					30		By Balance c/d		3,000	1,000
			4,000	5,000					4,000	5,000
May 1	To Balance b/d		3,000	1,000

Q. While preparing bank reconciliation statement, balance of bank account shall be taken from for matching the same with cash book.

Q. Mr. Lal operates two bank accounts both of which are maintained in the columnar cash book itself. You are required to prepare a proforma of the cash book, record the following transactions therein and draw the closing balances as on 30th June, 2016:

2016		(₹)
June 20	Opening Balance of Cash	1,180
	Progressive Bank	19,040
	Goodwill Bank (Overdraft)	6,460
20	Received cheque for ₹ 1,800 from a debtor Mr. X and deposited in Goodwill Bank. The Bank credited the amount on 23rd June and debited ₹ 4 as its collection charges.
21	Purchased goods for ₹ 18,210 and a cheque issued on Progressive Bank.
22	Paid office expenses ₹ 410 and ₹ 80 for stationery in cash.
23	Deposited a cheque for ₹ 21,090 being sale proceeds of goods in Progressive Bank. The Bank credited the amount on the same day and debited ₹ 21 as cheque discounting charges.
23	A cheque for ₹ 8,000 drawn by Mr. Lal himself on Progressive Bank was deposited in his account with Goodwill Bank.
25	Cash drawn from the account with Progressive Bank ₹ 600 for office use.
25	A cheque for ₹ 1,100 received from Mr. A and earlier deposited in Goodwill Bank (on 14th June) was returned unpaid and Bank debited ₹ 10 towards its charges. Mr. Lal received the amount of returned cheque and Bank charges in cash from Mr. A.
28	Deposited cash ₹ 1,500 in the account with Goodwill Bank.
29	Purchased postal stamps for ₹ 200 and paid in cash.

Join BYJU'S Learning Program