Please refer to Chapter 5 Bank Reconciliation Statement MCQ Class 11 Accountancy with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 11 Accountancy. Students should refer to MCQ Questions for Class 11 Accountancy with Answers to score more marks in Grade 11 Accountancy exams. Students should read the chapter Bank Reconciliation Statement and then attempt the following objective questions.

MCQ Questions Class 11 Accountancy Chapter 5 Bank Reconciliation Statement

Bank Reconciliation Statement MCQ Class 11 Accountancy provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

Question. When check is not paid by the bank, it is called?
(a) Honored
(b) Endorsed
(c) Dishonored
(d) a & b

Question. ‘NSF’ marked in cheque sent back by the bank indicates
(a) Cheque has been forged
(b) A bank couldn’t verify the identity
(c) No sufficient money
(d) A cheque cannot be cashed because it’s illegal

Question. A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?
(a) $2000 will be debited in cash book
(b) $2000 will be credited in cash book
(c) $4000 will be debited in cash book
(d) $4000 will be credited in the cash book

Question. On the bank statement, cash deposited by the company is known as
(a) Credit
(b) Debit
(c) Liability
(d) Expenses

Question. Unfavourable bank balances means:
(a) Credit balance in the cash book
(b) debit balance in the pass book
(c) Debit balance in the cash book
(d) Favourable balance in the cash book

Question. Credit balance in bank pass book means?
(a) Bank overdraft
(b) Bank balance
(c) Balance as per cash book
(d) None

Question. Farkhanda Jabeen Ltd. receives a check for Rs. 100 records it in cash book and deposits it on the same day. A statement sent by the bank that day does not show this Rs. 100. How is this shown on the bank reconciliation statement?
(a) As an uncredited deposits added to the bank statement balance
(b) As an uncredited deposits deducted from the bank statement balance
(c) As an Unpresented check added to the bank statement balance
(d) As an Unpresented check deducted from the bank statement balance

Question. Uncollected checks are also known as?
(a) Outstanding checks
(b) Uncleared checks
(c) Outstation checks
(d) Both b & c

Question. Favorable balance of bank statement implies that
(a) Credit balance
(b) Debit balance
(c) Bank overdraft
(d) Adjusted balance

Question. When check is not paid by the bank, it is called?
(a) Honored
(b) Endorsed
(c) Dishonored
(d) a & b

Question. The balance on the debit side of the bank column of cash book indicates?
(a) The total amount has drawn from the bank
(b) Cash at bank
(c) The total amount overdraft in the bank
(d) None of above

Question. A bank reconciliation statement is mainly prepared for
(a) Reconcile the cash balance of the cash book
(b) Reconcile the difference between the bank balance shown by the cash book and bank passbook
(c) Both (a) and (b)
(d) None of these

Question. Directly collections of bank are to be ___________ in cash book?
(a) Dr
(b) Cr
(c) both
(d) None

Question. Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.
(a) $500 will be debited
(b) $500 will be credited
(c) Non-adjustable
(d) $1000 will be subtracted

Question. Farkhanda Jabeen Ltd. receives a check for Rs. 100 records it in cash book and deposits it on the same day. A statement sent by the bank that day does not show this Rs. 100. How is this shown on the bank reconciliation statement?
(a) As an uncredited deposits added to the bank statement balance
(b) As an uncredited deposits deducted from the bank statement balance
(c) As an Unpresented check added to the bank statement balance
(d) As an Unpresented check deducted from the bank statement balance

Question. Bank statement also called?
(a) Pass book
(b) Cash book
(c) Credit book
(d) Debit book

Question. The statement that explains the causes of the difference between the cash book and bank statement is called:
(a) Bank Statement
(b) Financial Statement
(c) Income Statement
(d) Bank Reconciliation Statement

Question. Bank statements are kept by:
(a) Banks
(b) Auditors
(c) Depositors/Customers
(d) None of the above

Question. Checks issued but not presented in the bank are called:
(a) Unpresented cheques
(b) Uncredited cheques
(c) Uncollected cheques
(d) Uncleared cheques

Question. A bank reconciliation statement is prepared with the balance
(a) Passbook
(b) Cash book
(c) Both passbook and cash book
(d) None of these

Question. The cheque which is issued to creditor but is not presented for payment is called?
(a) Uncredited cheque
(b) Outstanding cheque
(c) Omitted cheque
(d) Dishonored cheque

Question. The cheque which is issued to creditor but is not presented for payment is called?
(a) Uncredited cheque
(b) Outstanding cheque
(c) Omitted cheque
(d) Dishonored cheque

Question. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).
(a) Cash receipt journal
(b) Cash payment journal
(c) Cash book
(d) Financial statements

Question. When a cheque is returned by the bank showing some technical reason is known as?
(a) Honor of the cheque
(b) Balance of account
(c) Dishonor of the cheque
(d) None of these

Question. When a cheque is returned by the bank showing some technical reason is known as?
(a) Honor of the cheque
(b) Balance of account
(c) Dishonor of the cheque
(d) None of these

Question. Favourable bank balance means :
(a) Credit balance in the cash book
(b) Credit balance in passbook
(c) Debit balance in the cash book
(d) Both (b) and (c)

Question. Favorable balance means?
(a) Credit balance in the cash book
(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) both b and c

Question. Bank statement also called?
(a) Pass book
(b) Cash book
(c) Credit book
(d) Debit book

Question. ‘NSF’ marked in cheque sent back by the bank indicates
(a) Cheque has been forged
(b) A bank couldn’t verify the identity
(c) No sufficient money
(d) A cheque cannot be cashed because it’s illegal

Question. The main purpose of preparing a bank reconciliation statement is?
(a) To know the bank balance
(b) To know the balance of bank statement
(c) To correct the cash book
(d) To identify causes of difference between cash book and bank statement

Question. $5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.
(a) $5000 will be credited
(b) $5000 will be debited
(c) $10,000 will be credited
(d) $10,000 will be debited

Question. Uncollected checks also referred as______________?
(a) Unpresented checks
(b) Uncredited checks
(c) Outstanding checks
(d) Bounced checks

Question. A cash deposit made by business appears on the bank statement as _______ balance?
(a) Debit
(b) Credit
(c) Expenses
(d) Liability

Fill In The Blanks

Question. Bank Reconciliation Statement is prepared to reconcile _________ and ________ balances. 

Question. Unfavourable balance as per Cash book is _________ balance. 

Question. Cash book overdraft is more than Pass Book overdraft, when payment side of Cash Book is ________. ( Overcast / undercast) 

Question. A statement showing reasons for differences between Cash Book and Pass book balances on a particular day is called _____________.

Question. Cheque issued and debited in the Pass Book but omitted to be recorded in Cash Book would _____________ the Cash book Balance. (Overcast/ undercast) 

Question. Bank overdraft is ___________ balance as Cash Book. 

Question. If Pass book is showing credit balances of Rs 8,000. A cheque deposited in Bank for Rs 2,000 returned dishonoured and the same cheque was not recorded in Cash Book earlier. The Cash Book will show _______balance of Rs. ___________. 

Question. ___________ is the copy of trader’s account in the books of the Bank.

True /False

Question. If Pass book is showing credit balances of Rs 8,000. A cheque deposited in Bank for Rs 2,000 returned dishonoured and the same cheque was not recorded inCash Book earlier. The Cash Book will show debit balance of Rs. 800. 

Question. Favourable balance as per Pass book is credit balance.

Question. Favourable balance as per Cash book is Credit balance.

Question. Cash book overdraft is more than Pass Book overdraft, when payment side of Cash Book is overcastted.

Question. Bank overdraft is debit balance as Cash Book.

Question. Transaction between an enterprise and its bank is recorded by the Bank in Pass Book.

Question. Bank Charges debited in pass book are recorded on the debit side of Cash Book in Bank Column.

Question. Cheque issued and debited in the Pass Book but omitted to be recorded in Cash Book would Overcast the Cash book Balance. 

Question. Accounting records qualitative character of business.

Question. Trial Balance is a proof only of the arithmetical accuracy of the accounts.

Question. A bill of exchange is a conditional document.

Question. Accounting is both a science and an art.

Question. Accountants regard a business separate from its proprietors.

Question. Accommodation bill are not negotiable instruments.

Question. Trial Balance is a proof only of the arithmetical accuracy of the accounts.

Match the following

Question.On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if credit balance as per cash book is given?

1. Cheque Deposited But not yet credited by bank	a) Plus side
2. Cheque issued and presented for payment	b) minus side
	c) none of any side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if credit balance as per cash book is given?

1. Dishonour of Bills of Exchange	a) Plus side
2. Direct payment made by bank as per standing instruction	b) minus side
	c) none of any side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if credit balance as per Pass book is given?

1. Cheque deposited but not yet credited by bank.	a) Plus side
2. Cheque issued and presented for payment	b) minus side
	c) none of any side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if credit balance as per cash book is given?

1. Dishonour of Bills of Exchange.	a) Plus side
2. Direct payment made by bank as per standing instruction	b) minus side
	c) none of any side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per pass book is given?

1. Cheque issued but omitted to be recorded in the cash book.	a) Plus side
2. Cheque issued and but not yet presented for payment	b) minus side
	c) none of any side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if credit balance as per cash book is given?

1. Post-dated cheque debited in the cash book but not sent to bank.	a) 15,000 Plus side
2. One outgoing cheque of Rs 700 was recorded twice in the cash book.	b)15,000 minus side
	c) 700 Plus side
	d) 1400 minus side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Pass book Rs is given?

1. Post-dated cheque debited in the cash book but not sent to bank.	a) 15,000 Plus side
2. One outgoing cheque of Rs 700 was recorded twice in the cash book	b)15,000 minus side
	c) 700 minus side
	d) 1400 Plus side

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Pass book Rs is given?

1. A bill of exchange of Rs 6,000 was discounted with bank for Rs 5,800 was dishonoured but Rs 6,000 was credited in the cash book.	a) 5,800 Plus side
2. A bill of exchange of Rs 6,000 was discounted with bank for Rs 5,800 was dishonoured but Rs 5,800 was credited in the cash book	b) 6,000 minus side
	c) 200 Plus side
	d) None of the above

Question. On which side (Plus side Or minus Side) the following items will be shown while preparing bank reconciliation statement, if Debit balance as per Cash book Rs is given?

1. A bill of exchange of Rs 6,000 was discounted with bank for Rs 5,800 was dishonoured but Rs 6,000 was credited in the cash book	a) 5,800 Plus side
2. A bill of exchange of Rs 6,000 was discounted with bank for Rs 5,800 was dishonoured but Rs 5,800 was credited in the cash book.	b) 6,000 minus side
	c) 200 minus side
	d) None of the above

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