Practice Importance Of Bank Reconciliation Statement (3.1.2) - Bank Reconciliation Statement
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Importance of Bank Reconciliation Statement

Practice - Importance of Bank Reconciliation Statement

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Practice Questions

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Question 1 Easy

What is the primary purpose of a Bank Reconciliation Statement?

💡 Hint: Think of discrepancies between two accounting records.

Question 2 Easy

Name one benefit of using a Bank Reconciliation Statement.

💡 Hint: Consider how accurately reflected data may reveal issues.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does the Bank Reconciliation Statement reconcile?

Bank fees
Cash book balance and bank statement balance
Outstanding checks

💡 Hint: It's essential finance terminology.

Question 2

True or False: A Bank Reconciliation Statement can help identify fraudulent transactions.

True
False

💡 Hint: Think about purposes of financial audits.

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Challenge Problems

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Challenge 1 Hard

A company discovers a difference of ₹1,200 between its cash book and bank statement. The cash book shows it should have ₹20,000. Can you list out the steps the company should take to reconcile these amounts?

💡 Hint: Start from the cash book figure and adjust step-by-step.

Challenge 2 Hard

Given the cash book balance of ₹10,000 and the bank statement balance of ₹12,000, with ₹1,000 in outstanding checks and ₹500 in bank fees, perform the reconciliation process.

💡 Hint: Work through the adjustments carefully to ensure accuracy.

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