Bank Reconciliation Statement (BRS) is a statement that is prepared to reconcile the difference between the bank balance shown by the cash book and bank passbook. This chapter holds a weightage of 6 marks out of 80 marks in the class 11 accountancy exam.

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

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

Bank Reconciliation Questions for Class 11

To help you get an idea about the type of questions that will be asked in the exam, we have provided some Class 11 Accountancy Importnat Questions for Bank Reconciliation here.

Q1. State the need for the preparation of 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 in knowing the actual bank balance.
  3. Helps in the detection and prevention of frauds and errors in recording banking transactions
  4. It helps in knowing 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: Bank overdraft is created when there is a withdrawal, which is over 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: It means that the bank has debited the amount from the user's account for some invalid reason. The following instance can help in understanding.

Rajesh’s account is charged an overdraft of Rs.5000 even though his account has a sufficient credit balance. It can happen when the cashier has done an incorrect entry into the account.

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.
  • Cheque deposited into the bank but yet to be realized.
  • Direct debits did by the bank on behalf of the customer.
  • Amount deposited directly into the bank account.
  • Interest and dividends that are not collected by the bank.
  • Direct payments made by the bank on behalf of the customers
  • Cheques that are deposited or bills discounted which is dishonored

Download BRS Accounts Class 11 Notes

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

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

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

Ans: The difference between cash book and pass book can arise due to some transactions that are recorded in the passbook not being 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 the process of preparing a bank reconciliation statement with an amended cash balance?

Ans: The difference between cash book and pass book can arise due to some transactions that are recorded in the passbook not being 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 statement that is prepared to rectify or tally the difference that exists between the user passbook and the cashbook of the firm, so that the cause of the difference can be determined and rectified is known as Bank Reconciliation Statement. Following are the reasons for its preparation:

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

Numerical Questions for BRS Accounts Class 11 Solutions

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

Q1. From the following particulars, prepare a bank reconciliation statement as of March 31, 2017.

(i) Balance as per cash book ₹ 3,200

(ii) Cheque issued but not presented for payment ₹ 1,800

(iii) Cheque deposited but not collected up to March 31, 2017, ₹ 2,000

(iv) 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

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 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 on 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:

(a)Cheque deposited in the bank but not credited ₹ 3,000

(b)Cheque issued but not yet present for payment ₹ 1,500

(c)Insurance premium paid by the bank ₹ 2,000

(d)Bank interest credit by the bank ₹ 400

(e)Bank charges ₹ 100

(d)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 in 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. Bank balance of ₹ 40,000 showed by 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 the month of 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 to it bank had credited Atul for ₹ 325 as interest and had debited him with ₹ 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) 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 showed by the cash book differs from the bank balance with regard to the following:

(a) Bank charges ₹ 100 on March 31, 2017, are not entered in the cash book.

(b) 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 cash book of the company in respect of this.

(c) Cheques totaling ₹ 12,980 were issued by the company and duly recorded in the cash book before March 31, 2017, but had not been presented at the bank for payment until after that date.

(d) A bill for ₹ 6,900 discounted with the bank is entered in the cash book with recording the discount charge of ₹ 800.

(e) ₹ 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.

(f) No entry has been made in the cash book to record the dishonor 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 dishonored not recorded in the Cash Book 650
Balance as per the Pass Book 50,870
55,940 55,940

FAQ's

Which are the best books to study for Class 11 accountancy?

Ultimate book of accountancy, T.S. Grewal Double entry book keeping, Oswal CBSE question bank, CBSE All in one Accountancy class 11 are some good books for accountancy.

What is the best preparation strategy for accountancy?

Regular study, practice questions, solving question papers and not keeping things for the last minute will be the best preparation method for the exam.

Will there be practical problems in the exam?

Yes. Problem based questions can come in the exam. Refer to the tips before the questions in each chapter for topics on which problem based questions can come.

What is the most important thing for problem based questions?

If you have understood the concept for e.g. preparation of a balance sheet, and remember the format you will certainly be able to solve the example.

How can I better prepare for Class 11th Accountancy syllabus?

Begin your preparation by studying from the right class 11 Accountancy books which covers all the topics according to the latest exam pattern and syllabus 2020. One of the best methods to score more marks in the exam is to practice as many previous year question papers as possible and taking up mock tests.

How many chapters are there in Class 11 Accountancy subject?

There are a total of 15 chapters in Class 11 Accountancy subject. Some of them are i.e. Introduction to Accounting, Theory Base of Accounting, Recording of Transaction - I, Recording of Transaction - II, Bank Reconciliation Statement, Trial Balance and Rectification of Errors, Depreciation, Provision, and Reserves, Bill of Exchange.

How many units are there in Class 11 Accountancy Syllabus?

There are a total of four units that are divided into 2 parts:

  • PART A: Financial Accounting - 1: Unit-1: Theoretical Framework; Unit-2: Accounting Process
  • PART A: Financial Accounting - 2: Unit-3: Financial Statements of Sole Proprietorship from Complete and Incomplete Records; Unit-4: Computers in Accounting