“25” Short Questions and Answers-Bank Reconciliation Statement.
The balance of the bank statement and the bank balance of the cash book should be reasonably equal. However, as always, this balance may not be equal, and then a bank reconciliation statement must be prepared.
So, today we’re going to learn about the “25 Short Questions and Answers-Bank Reconciliation Statement” If you read it from top to bottom, I’m sure you’re going to get a basic idea of the bank reconciliation statement. It will also enhance your accounting skill, which will help to perform any tests well.
For theory you may read this article: A Guide to BANK RECONCILIATION STATEMENT. Read This!
So let’s start
Question-01: What’s the bank?
Answer: Bank is a financial institution that accepts deposits and grants loans.
Question-02: What are the functions of the bank?
Answer: The function of the bank is as follows:
- Receipt of Deposits
- Advanced Loan
- Media for Exchange
- Supplying money to the business
- Control of credit
- Fixing and controlling the exchange rate
Question-03: What’s the bank account?
Answer: The bank account is an account in which the depositor’s money is kept.
Question-04: How many types of bank accounts are there?
Answer: Normally there are four types of bank accounts that are as follows:
- Current Account
- Savings Account
- Fixed Account
- Special Account
Question-05: What’s the current account?
Answer: Current accounts are accounts that are kept and maintained to meet the day-to-day banking needs of traders and industrialists.
Question-06: What’s the savings account?
Answer: The savings account that a bank opens to provide banking facilities to employees, professionals and other low-income individuals is usually referred to as a savings account.
Question-07: What’s a fixed account?
Answer: A fixed account that is opened for a specific period of the future, usually from 3 months to 3 or 5 years, is called a fixed account.
Question-08: What is a special account?
Answer: A bank account that is opened for a specific purpose is called a special account.
Question-09: What’s the cheque?
Answer: A cheque is an exchange bill which is an unconditional order signed by a depositor to a bank for payment on demand.
Question-10: What is the meaning of a check dishonor?
Answer: Dishonor of the cheque means the refusal of the drawer bank to pay the cheque of its customer.
Question-11: What’s the bank pass book?
Answer: As soon as the account is opened, the depositor gets a small free book from his bank to save the transaction in the case of a savings account, this book is called a bank pass book.
Question-12: What’s the bank statement?
Answer: the statement made by the bank to the full details of its depositor is known as a bank statement.
Question-13: What is the Bank’s reconciliation statement?
Answer: The statement prepared to identify the differences between the balance of the bank statement and the bank column of the cash book is known as the bank reconciliation statement.
Question-14: What is the main objective to prepare the bank reconciliation statement?
Answer: The main purpose of preparing the bank reconciliation statement is to reconcile the bank balance between the cash book and the bank statement.
Question-15: What are the main benefits of preparing a bank reconciliation statement?
Answer: If there is an error in the transaction kept in the cash book and bank statement, it can be corrected by preparing the bank reconciliation statement.
Question-16: Why bank statement is essential in preparing a bank reconciliation statement?
Answer: The bank statement contains a lot of necessary financial information, which is not in the cash book and these are helpful in preparing the bank reconciliation statement.
Question-17: Is it mandatory to prepare a bank reconciliation statement?
Answer: Not Mandatory.
Question-18: Bank reconciliation statement is prepared according to which principle of accounting?
Answer: According to the full disclosure principle.
Question-19: What are the reasons for the differences between the balance of the bank statement and the bank column of the cash book?
- If the cheque is not collected in due time, there will be a case of difference between the balances.
- There will be differences in the cheque issued for debt settlement if it is not made before the bank in due time.
- If the bank makes any payment or receives any collection on behalf of its client without informing the client, there will be a difference.
Question-20: What can be brought from the bank reconciliation statement?
- Bank balance
- Amount of cheque dishonored.
- Total deposit Interest
- The total amount of charges.
Question-21: Why bank reconciliation account is not a ledger account?
Answer: Because there are no debit and credit sides of bank reconciliation statements like a ledger.
Question-22: What is meant by bank deposit balance?
Answer: Balance of money deposited in the bank by the depositor.
Question-23: What is meant by the debit balance of bank statements?
Answer: Bank overdraft.
Question-24: Who records the bank statement?
Question-25: What is a bank overdraft?
Answer: Bank overdraft is the extra withdrawal of money deposited in the bank by the depositor.
I hope you’ve learned about the “25 Short Questions and Answers-Bank Reconciliation Statement” at the end of the article.
If you want to learn more or if there is any confusion, don’t forget to say something to us.
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