Chapter : 5
Bank Reconciliation Statement
Short Answers
1. State the need for the preparation of bank reconciliation statement?
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2. What is a bank overdraft?
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3. Briefly explain the statement ‘wrongly debited by the bank’ with the help of an example.
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4. State the causes of difference occurred due to time lag.
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5. Briefly explain the term ‘favourable balance as per cash book’.
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6. Enumerate the steps to ascertain the correct cash book balance.
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Long Answers
1. What is a bank reconciliation statement. Why is it prepared?
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2. Explain the reasons where the balance shown by the bank passbook does not agree with the balance as shown by the bank column of the cash book.
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3. Explain the process of preparing bank reconciliation statement with amended
cash balance.
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