Question

Which statement is uncommon for a Bank Reconciliation Statement?
(i). Part of the double entry system
(ii). Not part of the double entry system
(iii). Sent by the firm to the bank
(iv). Posted to the ledger accounts.

• A. (iv), (i) and (ii)
• B. (i) and (ii)
• C. (i), (ii) and (iv)
• D. (i), (iii) and (iv)

Answer 1

The correct option is D (i), (iii) and (iv)

A bank reconciliation statement is a memorandum statement prepared by the account holder to reconcile his bank balance as per the pass book and cash book. It is meant for use by the business only, hence is not sent to anyone else and it does not form part of books of accounts