not a timing difference? (a) Cheque deposited but not yet credited (b) Cheque issued but not yet presented for payment (c) Amount directly paid into the bank (d) Wrong debit in the cash book Answer . (b) . (c) .
(d) . (a) . (b) . (d) II Very short answer questions .
What is meant by bank overdraft? . What is bank reconciliation statement? .
State any two causes of disagreement between the balance as per bank column of cash book and bank statement. . Give any two expenses which may be paid by the banker as per standing instruction. .
Substitute the following statements with one word/phrase (a) A copy of customer’s account issued by the bank (b) Debit balance as per bank statement (c) Statement showing the causes of disagreement between the balance as per cash book and balance as per bank statement Accountancy - . Do you agree on the following statements? Write “yes” if you agree, and write “no” if you disagree. (a) Bank reconciliation statement is prepared by the banker.
(b) Adjusting the cash book before preparing the bank reconciliation statement is compulsory. (c) Credit balance as per bank statement is an overdraft. (d) Bank charges debited by the bank increases the balance as per bank statement. (e) Bank reconciliation statement is prepared to identify the causes of differences between balance as per bank column of the cash book and balance as per cash column of the cash book.
III Short answer questions . Give any three reasons for preparing bank reconciliation statement. . What is meant by the term “cheque not yet presented?” .
Explain why does money deposited into bank appear on the debit side of the cash book, but on the credit side of the bank statement? . What will be the effect of interest charged by the bank, if the balance is an overdraft? .
State the timing differences in BRS with examples. IV Exercises . From the following particulars prepare a bank reconciliation statement of