Bank Reconciliation

JKSSB Panchayat Account Assistant · Accountancy & Finance · 15 practice questions with answers and explanations: 3 Easy, 8 Medium, 4 Hard.

Sample questions

Sample Easy question 1

A debit balance in the bank column of the cash book means:

  1. The firm has money at the bank
  2. The firm has an overdraft
  3. The bank owes nothing to the firm
  4. Cheques have been dishonoured
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Answer: A. For the firm, bank is an asset: a debit balance in the cash book is a favourable balance (money at the bank).

Sample Medium question 2

A cheque deposited but not yet cleared by the bank causes what kind of difference in a BRS?

  1. Bank balance as per passbook is lower than cash book
  2. Bank balance as per passbook is higher than cash book
  3. No difference arises
  4. The cash book balance becomes negative
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Answer: A. The cash book already shows the deposit, but until the bank clears it, the passbook balance is lower.

Sample Hard question 3

If the passbook shows a credit balance and the cash book shows a debit balance for the same account, what does this typically indicate?

  1. Both represent a favourable balance in the depositor's favour, just viewed from different perspectives
  2. An error has definitely occurred
  3. The account is overdrawn
  4. The bank has closed the account
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Answer: A. A bank's books mirror the customer's: a credit balance in the passbook (bank owes the customer) corresponds to a debit balance in the customer's own cash book.

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