DK Goel Solutions Class 11 Chapter 15 Bank Reconciliation Statements

1. DK Goel Solutions Class 11 Chapter 15 Bank Reconciliation Statements DK Goel Accountancy Class 11 Solutions Chapter 15 Bank Reconciliation Statements, which is laid out by master Accountancy instructors from the most recent form of DK Goel Class 11 Accountancy books. We, at Dk Goel Solutions help students to fathom every one of the hypotheses, specifically. There are various ideas in Accountancy, however the ideas of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required. DK Goel Solutions Class 11 – Chapter 15 Long Answer Questions for DK Goel Solutions Class 11 Chapter 15 Question 1: What is a Bank Reconciliation Statement? Explain any four points regarding need and importance of preparing a Bank Reconciliation Statement. Solution 1:

2. The Bank Reconciliation Statement is a statement prepared primarily to reconcile the difference between the Cash Book and Bank Pass Book's 'Bank Balance.' Bank Reconciliation Statement Need and Importance:- (1) A statement of bank reconciliation identifies the error or omissions that could have been committed by either the bank. The mistake thus detected can be corrected accordingly. (2) The client becomes sure of the correctness of the bank balance shown by the cash book by preparing a bank reconciliation statement. It helps him to make further bank transactions. (3) The preparation of a revised cash book is facilitated by a reconciliation statement. (4) A declaration of reconciliation helps to reveal an unnecessary delay in the bank's collection of cheques. (5) It also helps to keep track of the cheques that have been sent for collection by the bank. Short Answer Questions for DK Goel Solutions Class 11 Chapter 15 Question 1: What is the purpose of preparing Bank Reconciliation Statement? Solution 1: For the following purposes, the Bank Reconciliation Document will be prepared: 1. It identifies the mistakes in either the Cash Book or Bank Statement or Bank Pass Book that could have been committed. 2. The reconciliation acknowledges an unreasonable pause in the clearing of deposited or released cheques. 3. Embarrassments are discouraged by daily reconciliation. Reconciliation aims to validate the authenticity of entries registered in the Cash Book by management. 4. The real bank statement is revealed. Question 2: Give four causes of difference in the Cash Book balance (bank column) and Pass book balance. Solution 2: (i) Cheques drawn but not cleared. (ii) Interest on bank overdraft. (iii) Cheques paid into the bank but not collected.

3. (iv) Interest on investment collected by the bank. Question 3: Prepare a bank reconciliation statement, taking imaginary figures, starting from the credit balance as per Cash Book. Solution 3: Question 4: State any six reasons when the cash book balance will be higher than the pass book balance. Solution 4: 1. Cheque issued but not yet presented for payment in the bank. 2. Bank charges and commission charged by the bank. 3. Direct deposit by customer into the bank. 4. Direct payment made by the bank on behalf of customers. 5. Transaction wrongly debited in cash book. 6. Transaction wrongly credited in pass book. Question 5: In which column (Plus or Minus) you will write the following while prepare Bank Reconciliation Statement from the cash bank overdraft balance? (i) Cheques drawn but not cleared. (ii) Interest on bank overdraft. (iii) Cheques paid into the bank but not collected. (iv) Interest on investment collected by the bank.

4. Solution 5: Question 6: In which Column (Plus or Minus) you will write the following while preparing Bank Reconciliation Statement from the Cash Book overdraft balance. (i) Cheques deposited but dishonoured. (ii) The receipt side of cash book overcast. (iii) Interest on overdraft. (iv) Direct amount deposited by the customer into bank. Solution 6: Question 7: While preparing bank reconciliation statement from the debit balance of the pass book indicate whether the following items will be written in Plus or Minus column. (i) Insurance premium paid by the bank. (ii) Interest and dividend collected by the bank. (iii) Payment of ‘Bills Payable’ by the bank on behalf of the customer. (iv) Interest allowed by the bank. (v) Cheque deposited into the bank but not yet cleared. Solution 7:

5. Question 8: While preparing Bank Reconciliation Statement from the balance of Cash Book indicate whether the following items will be written in Plus or Minus column. (i) Cheques issued but not yet presented for payment. (ii) Cheques paid into the bank not yet cleared. (iii) Dividend collected by the bank on customer’s investments. (iv) Payment of club fee by the bank according to the standing instructions. (v) Direct payment into the bank by a customer. (vi) Any wrong entry on the debit side of the pass book. (vii) Dishonour of the cheques deposited into the bank. Solution 8: Numerical Questions (DK Goel Solutions Class 11 Chapter 15) Question 1: Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st March, 2017, the bank column of its cash book showed a debit balance of Rs. 1,54,300. However, the bank statement showed a different balance as on that date. The following were the reasons for the difference : (i) Cheques deposited, but not yet credited by the bank 75,450

6. (ii) Cheques issued, but not yet presented for payment 80,760 (iii) Bank charges not yet recorded in the cash book 1,135 (iv) Cheques received by the bank directly from trade debtors 1,35,200 (v) Insurance premium paid by the bank as per standing instructions, but not yet recorded in the cash book 15,400 (vi) Dividend collected by the bank, but not yet recorded in the cash book 1,000 Find out the balance as per the bank statement as on 31st March, 2017. Solution 1: DK Goel Solutions Class 11 Chapter 15 Point of Knowledge:- 1. Regular reconciliation discourages embezzlements. Reconciliation helps the management to verify the accuracy of entries recorded in the Cash Book. 2. Bank reconciliation statement shows actual bank balance. Also read - Dk Goel Solutions Class 12 Download Free study materials for your Examinations

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