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Standard XI

Accountancy

Sales Return Book

Which of the ...

Question

Which of the following statement is true?

Bank charges increase debit balance shown as per bank column of the cash book

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Bank charges increase debit balance as per bank pass book

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A credit sale is recorded in the cash book

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Bank reconciliation statement is prepared by a bank

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Solution

The correct option is B
Bank charges increase debit balance as per bank pass book

Bank charges are direct debits by bank & hence they increase the debit balance as per pass book.

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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

Q. Bank balance as per cash book (Dr.) of NZ & Co. was Rs.

1, 050

-Bank charges not recorded in cash book was Rs.

180

.
-Rs.

750

was directly paid by customer into bank was not recorded in cash book.
-Debit side of cash book was undercast by Rs.

100

-Cheque deposited for Rs.

700

was not credited in pass book.
-Out of cheques of Rs.

900

issued but not presented for payments.
If BRS is prepared after adjusting cash book, balance as per Adjusted Cash book should be Rs.________ and balance as pass book should be Rs.__________

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. From the following particulars, find out corrected bank balance as per Cash Book and thereafter prepare a Bank Reconciliation Statement as on 31st March, 2019 of a sole proprietor:

		₹
(i)	Bank overdraft as per the Cash Book.	80,000
(ii)	Cheques deposited as per the bank statement but not entered in the Cash Book.	3,000
(iii)	Cheques recorded for collection but not sent to the bank.	10,000
(iv)	Credit side of bank column casted short.	1,000
(v)	Bank charges recorded twice in the Cash Book.	100
(vi)	Customer's cheque returned as per the Bank Statement.	4,000
(vii)	Cheques issued but dishonoured on technical grounds.	3,000
(viii)	Bills collected by bank directly.	20,000
(ix)	Cheque received entered twice in the Cash Book.	5,000

Q. Bank column of cash book showed bank balance of

R s . 9950

. While reconciling the bank balance it was noticed that a cheque issued and paid by the bank

R s . 5100

was wrongly shown on the debit side of bank column as

R s . 510

, bank charges amounting to

R s . 210

, LIC payment of

R s . 1200

made by the bank as per standing instruction were not accounted in the cash book. Find the adjusted balance of cash as per cash book.

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Which of the following statement is true?

The correct option is B Bank charges increase debit balance as per bank pass book Bank charges are direct debits by bank & hence they increase the debit balance as per pass book.

The correct option is B
Bank charges increase debit balance as per bank pass book

Bank charges are direct debits by bank & hence they increase the debit balance as per pass book.