Bank Reconciliation Statement Accounts Class 11 Questions With Solutions

Overview: Passing the Class 11 Accountancy exam requires thorough preparation in each chapter. Let's dive into the Bank Reconciliation Statements for Class 11 Accountancy and look at some sample questions with answers.

Class 11 Accountancy Chapter 5 Bank Reconciliation Statement is a crucial chapter that explains the different concepts and terms related to this topic and develops the conceptual foundation. This chapter is worth 6 out of 80 marks in the class 11 accountancy exam.

Continue reading for insights into Bank Reconciliation Statements for Accountancy Class 11 and sample questions with solutions.

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Bank Reconciliation for Class 11 Accountancy 2024

A Bank Reconciliation Statement (BRS) is prepared to reconcile the difference between the bank balance shown by the cash book and the bank passbook.

In this post, we have provided differences between cash and pass books, important questions, and more to help you better understand the Bank Reconciliation Statement Accounts Class 11 chapter.

Causes for Difference Between Cash Book and Pass Book

The difference between cash book and pass book may arise due to the following reasons:

• Transactions are recorded in the cash book but not in the passbook.
• Transactions are recorded in the passbook but not in the cashbook.
• Differences are caused by errors in recording transactions, such as transactions recorded twice in the cashbook/passbook, direct payments by the bank, bills collected by the bank on behalf of the customer, etc.

Benefits of Bank Reconciliation Statement

• Helps in tracking errors.
• Helps terminate the risks of fraud.
• Helps in tracking transaction status periodically.
• Helps in achieving accurate balance.

Preparation of Bank Reconciliation Statement

• A BRS is prepared by taking either the balance of the Passbook or the Cash Book as a starting point.
• The bank records all the deposits on the credit and withdrawals on the debit side of the Passbook.
• Tally the debit side of the cash book and the credit side of the passbook and vice-versa, and note the point of differences.

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Bank Reconciliation for Class 11 Accountancy Sample Questions

To help you understand the type of questions that will be asked in the exam, we have provided some Class 11 Accountancy Important Questions for Bank Reconciliation here.

Q1. State the need to prepare a bank reconciliation statement.

Ans: Preparing a bank reconciliation statement is necessary for:

1. Helps in identifying the difference between a cash book and a passbook.
2. It helps to know the actual bank balance.
3. Helps in the detection and prevention of frauds and errors in recording banking transactions
4. It helps to know the actual bank balance.
5. Helps to create a revised Cash Book that reflects true bank balance.
6. It helps in preventing the embezzlement of money from the bank account.

Q2. What is a bank overdraft?

Ans: A bank overdraft is created when a withdrawal exceeds the bank balance available in the account. It is an obligation to the account holder.

Q3. Briefly explain the statement ‘wrongly debited by the bank’ with the help of an example.

Ans: This means the bank debited the amount from the user's account for an invalid reason. The following instance can help in understanding.

Rajesh’s account is charged an overdraft of Rs.5000 despite having a sufficient credit balance. This can happen when the cashier makes an incorrect entry into the account.

Read Also: Class 11 Commerce Syllabus

Q4. State the causes of difference that occurred due to time lag.

Ans: The following are the causes of difference that occurred due to time lag

• The cheque issued by the firm is not yet presented for payment.
• The cheque was deposited into the bank but is yet to be realized.
• The bank does direct debits on behalf of the customer.
• The amount is deposited directly into the bank account.
• Interest and dividends that the bank does not collect.
• Direct payments made by the bank on behalf of the customers
• Cheques that are deposited or bills discounted which is dishonoured

Q5. Briefly explain the term favourable balance as per the cash book

Ans: When the total of the debit column of the Cash Book is more than the total credit column of the Cash Book, it is known as a debit balance or favourable balance. A favourable balance is an asset to an account holder. A favourable balance can also be defined as a surplus of deposits over withdrawals.

Read Also: Class 11 Commerce Question Papers

Q6. Enumerate the steps to ascertain the correct cash book balance.

Ans: The difference between the cash book and the passbook can arise because some transactions recorded in the passbook are not present in the cash book. This can be rectified by recording those transactions in the cash book. The balance thus obtained is called an adjusted balance or amended balance. The following steps describe this process.

• 1. Note bank balance as per cash book.
• 2: Make corrections for errors committed in the cash book.
• 3: Transactions present only on the passbook’s credit side must be updated on the debit side of the cashbook
• 4. Transactions present only on the passbook’s debit side must be updated on the debit side of the cashbook
• 5: Calculate the new cash book balance and use it to prepare a Bank Reconciliation Statement.

Q7. Explain preparing a bank reconciliation statement with an amended cash balance.

Ans: The difference between the cash book and the passbook can arise because some transactions recorded in the passbook are not present in the cash book. This can be rectified by recording those transactions in the cash book. The balance thus obtained is called an adjusted balance or amended balance. The following steps describe this process.

• Note bank balance as per cash book.
• Make corrections for errors committed in the cash book.
• Transactions present only on the passbook’s credit side must be updated on the debit side of the cashbook
• Transactions present only on the passbook’s debit side must be updated on the debit side of the cashbook
• Calculate the new cash book balance and use it to prepare a Bank Reconciliation Statement.

Q8. What is a bank reconciliation statement? Why is it prepared?

Ans: A Bank Reconciliation Statement is prepared to rectify or tally the difference between the user passbook and the firm's cashbook to determine and rectify the cause. The following are the reasons for its preparation:

• To determine if the balance reported by the company’s cashbook is correct.
• Rectifying errors in the cash book so proper statements can be generated.
• Prevents fraudulent activities like embezzlement and improves accountability.
• To discover any errors made by the bank and apply corrective measures.
• Helps check the accuracy of information recorded in both books.

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Numerical Questions and Solutions for BRS Accounts Class 11 2022

Solving previous year's Class 11 Accountancy Sample Papers will help you know the difficulty level and the type of questions asked in the exam. The following are numerical questions for the Bank Reconciliation Statement of Class 11 accountancy. Review the commonly asked BRS questions and enhance your preparation for the upcoming exam.

Q1. Prepare a bank reconciliation statement from the following particulars as of March 31, 2017.

• Balance as per cash book ₹ 3,200
• Cheque issued but not presented for payment ₹ 1,800
• Cheque deposited but not collected up to March 31, 2017, ₹ 2,000
• Bank charges debited by bank ₹ 150

Ans: The reconciliation statement is shown below:

Bank Reconciliation Statement,  as of March 31, 2017
S. No.	Particulars	(+) Amount	(–) Amount
	Balance as per the Cash Book	3,200
(i)	Cheque issued but not presented for payment	1,800
(ii)	Cheque deposited but not cleared	-	2,000
(iii)	Bank charges	-	150
	Balance as per the Pass Book		2,850
		5,000	5,000

Read Also: Class 11 Accountancy Sample Papers

Q2. On March 31 2017 the cash book showed a balance of ₹ 3,700 as cash at the bank, but the bank passbook made up to the same date showed that cheques for ₹ 700, ₹ 300, and ₹ 180 respectively had not been presented for payment, Also, cheque amounting to ₹ 1,200 deposited into the account had not been credited. Prepare a bank reconciliation statement.

Ans: The reconciliation statement is shown below:

S. No.	Particulars	(+) Amount	(-) Amount
	Balance as per the Cash Book	3,700
(i)	Three cheques issued but not presented for payment	1,180
(ii)	Cheque deposited but not cleared		1,200
	Balance as per the Pass Book		3,680
		4,880	4,880

The balance as per pass book as of 31st March is ₹3, 680

Q3. The cash book shows a bank balance of ₹ 7,800. On comparing the cash book with the passbook the following discrepancies were noted:

• Cheque deposited in the bank but not credited ₹3,000
• Cheque issued but not yet present for payment ₹1,500
• Insurance premium paid by the bank ₹2,000
• Bank interest credit by the bank ₹400
• Bank charges ₹100
• Directly deposited by a customer ₹4,000

Ans: The bank reconciliation statement is shown below:

S. No.	Particulars	(+) Amount	(-) Amount
Balance as per the Cash Book		7,800	-
(a)	Cheque deposited but not credited to the Pass Book		3,000
(b)	Cheque issued but not yet presented for payment	1,500
(c)	An insurance premium paid by the bank		2,000
(d)	Bank allowed interest	400
(e)	Bank debited charges		100
(f)	Amount directly deposited by the customer	4,000
Balance as per the Pass Book			8,600
		13,700	13,700

Q4. A Bank balance of ₹ 40,000 was shown in the cash book of Atul on December 31, 2016. It was found that three cheques of ₹2,000, ₹5,000, and ₹8,000 deposited during December were not credited in the passbook till January 02, 2017. Two cheques of ₹ 7,000 and ₹8,000 issued on December 28, were not presented for payment till January 03, 2017. In addition, the bank had credited Atul for ₹325 as interest and had debited him ₹50 as bank charges for which there were no corresponding entries in the cash book.

Prepare a bank reconciliation statement as of December 31, 2016.

Ans: The bank reconciliation statement is shown below:

S. No.	Particulars	(+) Amount	(-) Amount
Balance as per the Cash Book		40,000
(i)	Cheques deposited but not cleared in December		15,000
(ii)	A cheque issued but presented for payment for payment	15,000
(iii)	Bank allowed interest	325
(iv)	Bank debited charges		50
	Balance as per the Pass Book		40,275
		55,325	55,325

Q5. On comparing the cash book with the passbook of Naman, it is found that on March 31, 2017, the bank balance of ₹40,960 shown by the cash book differs from the bank balance about the following:

• Bank charges ₹100 on March 31, 2017, are not entered in the cash book.
• On March 21, 2017, a debtor paid ₹2,000 into the company’s bank in settlement of his account, but no entry was made in the company's cash book in respect of this.
• Cheques totaling ₹12,980 were issued by the company and duly recorded in the cash book before March 31, 2017, but they were not presented at the bank for payment until after that date.
• A bill for ₹6,900 discounted with the bank is entered in the cash book with a recording of the discount charge ₹800.
• ₹3,520 is entered in the cash book as paid into the bank on March 31st, 2017, but not credited by the bank until the following day.
• No entry has been made in the cash book to record the dishonour or, on March 15, 2017, of a cheque for ₹ 650 received from Bhanu.

Prepare a reconciliation statement as of March 31, 2017.

Ans: The reconciliation statement is shown below:

S. No.	Particulars	(+) Amount	(-) Amount
	Balance as per the Cash Book	40,960
(a)	Bank debited charges		100
(b)	Amount directly paid by the debtor into a bank account	2,000
(c)	Cheques issued but not presented for payment	12,980
(d)	Discount charges of the bill were omitted to be recorded in the Cash Book		800
(e)	Amount debited in the bank column of the Cash Book but not deposited in the bank		3,520
(f)	Cheque dishonoured was not recorded in the Cash Book		650
	Balance as per the Pass Book		50,870
		55,940	55,940

Read Also: Class 11 Commerce Syllabus 2025

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Key Takeaways

• Bank Reconciliation is a fundamental accounting process that ensures the accuracy of financial records.
• Bank reconciliation Statements for Class 11 Accountancy are integral parts of the banking system, keeping records of every transaction.
• Mastering this skill is essential if you are planning for a future in financial management.