Class 11 Accountancy — Chapter 5: Bank Reconciliation Statement

What you'll learn

• ▸Meaning and Need for Bank Reconciliation Statement
• ▸Causes of Difference: Timing
• ▸Cheques Issued but not Presented for Payment
• ▸Cheques Deposited but not yet Collected or Credited
• ▸Direct Debits and Payments by the Bank
• ▸Direct Deposits and Collections by the Bank
• ▸Causes of Difference: Errors
• ▸Preparation of Bank Reconciliation Statement

Chapter Summary

--- PAGE 1 --- 11110CH05 Bank Reconciliation Statement 5 In chapter 4, you have learnt that the business organisations keep a record of their cash and bank transactions in a cash book. The cash book also serves the purpose of both the cash account and the bank account and shows the balance of both at the end of the period. Once the cash book has been balanced, it is usual to check its details with the records of the firm's bank transactions as recorded by the bank. To enable this check, the cashier needs to ensure that the cash book is completely up to date and a recent bank statement (or a bank passbook) has been obtained from the bank. A bank statement or a bank passbook is a copy of a bank account as shown by the bank records. This enable the bank customers to check their funds in the bank regularly and update their own records of transactions that have occurred. An illustrative bank passbook of a current …

Practice Questions from this Chapter

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1. Explain bank statements simply. Get Solution →
2. Quiz me on reconciliation causes. Get Solution →
3. Give a real example of discrepancies. Get Solution →
4. What is a bank statement or a bank passbook defined as in the chapter? Get Solution →
5. In a bank passbook, which column are deposits shown in? Get Solution →
6. What is the primary purpose of preparing a Bank Reconciliation Statement (BRS)? Get Solution →
7. According to the chapter, what are the two main categories of causes for differences between the cash book and passbook? Get Solution →
8. What does the term 'cheques issued but not yet presented for payment' mean? Get Solution →

Did you know?

• 💡 The world's oldest bank opened in Siena, Italy, in 1472 and is still running.
• 💡 The very first paper money was used in ancient China over 1,000 years ago.
• 💡 Banks digitally process billions of transactions worldwide every single day.
• 💡 Detectives often match tiny clues, like fingerprints, to solve big mysteries.
• 💡 Even professional proofreaders can miss small mistakes when comparing two texts.

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