Chapter bank-reconciliation-statement: Bank Reconciliation Statement Assertion-Reason Questions | accountancy Class 11 CBSE

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 1

Logic Check

Assertion (A): A Bank Reconciliation Statement is prepared to reconcile the difference between the cash book balance and the passbook balance. Reason (R): The cash book and passbook record the same transactions from different perspectives, and timing gaps or errors can cause their balances to differ.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 2

Logic Check

Assertion (A): A bank passbook shows deposits in the credit column and withdrawals in the debit column. Reason (R): From the bank's perspective, the customer's deposit is a liability (money owed to the customer), so it is credited to the customer's account.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 3

Logic Check

Assertion (A): When cheques issued by the firm are not yet presented for payment, the cash book balance is lower than the passbook balance. Reason (R): The firm credits the bank column of the cash book as soon as it issues a cheque, reducing the cash book balance before the bank makes any debit.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 4

Logic Check

Assertion (A): When cheques deposited by the firm are not yet collected by the bank, the cash book balance will be higher than the passbook balance. Reason (R): The firm records the receipt of the cheque by debiting the bank column of the cash book, increasing its balance; the bank credits the account only after actual collection.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 5

Logic Check

Assertion (A): Bank charges debited by the bank in the passbook but not yet recorded in the cash book make the passbook balance lower than the cash book balance. Reason (R): The bank reduces the customer's account balance by debiting charges in the passbook, but the cash book has not yet recorded this reduction.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 6

Logic Check

Assertion (A): Interest and dividends collected by the bank on behalf of the customer and credited to the passbook do not cause any difference between cash book and passbook. Reason (R): The firm records these collections immediately in the cash book upon instruction to the bank.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 7

Logic Check

Assertion (A): A credit balance in the bank column of the cash book represents a bank overdraft. Reason (R): When withdrawals from the bank exceed deposits, the bank column of the cash book shows a credit balance, indicating that the firm owes money to the bank.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 8

Logic Check

Assertion (A): Direct payments made by the bank under standing instructions (e.g., insurance premium) reduce the passbook balance but not the cash book balance immediately. Reason (R): The firm gives standing instructions to the bank to make payments; the bank debits the account and the firm records the payment in the cash book only when it receives the bank statement.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 9

Logic Check

Assertion (A): A dishonoured cheque that is deposited by the firm and debited in the passbook on dishonour will cause the passbook balance to be higher than the cash book balance. Reason (R): When the bank debits the firm's account for the dishonoured cheque, the passbook balance decreases, while the cash book still shows the amount as received.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 10

Logic Check

Assertion (A): When preparing a BRS starting from the favourable cash book balance, cheques issued but not presented are added to arrive at the passbook balance. Reason (R): These cheques have already reduced the cash book balance but the passbook has not yet recorded the corresponding debit, so the passbook balance is higher; adding them adjusts the cash book balance upward.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 11

Logic Check

Assertion (A): When preparing a BRS starting from the favourable cash book balance, cheques deposited but not yet collected are deducted. Reason (R): These cheques have been debited in the cash book (increasing balance) but the bank has not yet credited them in the passbook; deducting them from the cash book balance brings it down to the passbook level.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 12

Logic Check

Assertion (A): Errors committed by the firm in recording cash book transactions can cause a difference between cash book and passbook balances. Reason (R): When a transaction is omitted or recorded with a wrong amount in the cash book, the cash book balance differs from the passbook balance, which records the same transaction correctly.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 13

Logic Check

Assertion (A): An overdraft in the passbook is represented by a credit balance in the passbook. Reason (R): When the firm withdraws more than it has deposited, the bank owes nothing — instead, the firm owes the bank; this is shown as a debit balance in the passbook.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 14

Logic Check

Assertion (A): A Bank Reconciliation Statement helps in detecting errors and frauds in the cash book or passbook. Reason (R): By comparing the two books item by item, any discrepancy arising from errors or unauthorised transactions can be identified.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 15

Logic Check

Assertion (A): When a debtor directly deposits money into the firm's bank account, the passbook balance exceeds the cash book balance. Reason (R): The bank immediately credits the firm's passbook for the direct deposit, but the firm records it in the cash book only after receiving the bank statement.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 16

Logic Check

Assertion (A): When a bill of exchange discounted with the bank is dishonoured on maturity, the bank will credit the firm's account to reverse the earlier debit. Reason (R): Dishonour of a discounted bill means the acceptor has not paid; the bank debits the firm's account to recover the amount previously advanced.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 17

Logic Check

Assertion (A): When the debit balance as per the cash book is taken as the starting point in BRS, the treatment of items is the reverse of when the passbook balance is the starting point. Reason (R): The two balances differ because items are recorded in one book but not the other; reversing the treatment ensures both starting points lead to the same final balance.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 18

Logic Check

Assertion (A): When an outgoing cheque is recorded twice in the cash book, the cash book balance is understated. Reason (R): Recording a payment twice reduces the cash book balance by twice the cheque amount, resulting in a balance that is lower than the correct figure.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 19

Logic Check

Assertion (A): The BRS is a part of the double entry book-keeping system and forms part of the ledger. Reason (R): The BRS is a statement prepared outside the books of accounts to explain differences and is not a ledger account.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 20

Logic Check

Assertion (A): When the payment side of the cash book is undercast by ₹100, the cash book balance is overstated by ₹100. Reason (R): Undercasting the payment side means total payments are shown less than actual, leaving the closing balance higher than it should be.

Reasoning Options

ByteNotes

Chapter sections

Chapter bank-reconciliation-statement: Bank Reconciliation Statement | Assertion-Reason

Assertion (A): A bank passbook shows deposits in the credit column and withdrawals in the debit column. Reason (R): From the bank's perspective, the customer's deposit is a liability (money owed to the customer), so it is credited to the customer's account.

Assertion (A): When cheques issued by the firm are not yet presented for payment, the cash book balance is lower than the passbook balance. Reason (R): The firm credits the bank column of the cash book as soon as it issues a cheque, reducing the cash book balance before the bank makes any debit.

Assertion (A): Interest and dividends collected by the bank on behalf of the customer and credited to the passbook do not cause any difference between cash book and passbook. Reason (R): The firm records these collections immediately in the cash book upon instruction to the bank.

Assertion (A): A credit balance in the bank column of the cash book represents a bank overdraft. Reason (R): When withdrawals from the bank exceed deposits, the bank column of the cash book shows a credit balance, indicating that the firm owes money to the bank.

Assertion (A): An overdraft in the passbook is represented by a credit balance in the passbook. Reason (R): When the firm withdraws more than it has deposited, the bank owes nothing — instead, the firm owes the bank; this is shown as a debit balance in the passbook.

Assertion (A): A Bank Reconciliation Statement helps in detecting errors and frauds in the cash book or passbook. Reason (R): By comparing the two books item by item, any discrepancy arising from errors or unauthorised transactions can be identified.

Assertion (A): When an outgoing cheque is recorded twice in the cash book, the cash book balance is understated. Reason (R): Recording a payment twice reduces the cash book balance by twice the cheque amount, resulting in a balance that is lower than the correct figure.

Assertion (A): The BRS is a part of the double entry book-keeping system and forms part of the ledger. Reason (R): The BRS is a statement prepared outside the books of accounts to explain differences and is not a ledger account.

Assertion (A): When the payment side of the cash book is undercast by ₹100, the cash book balance is overstated by ₹100. Reason (R): Undercasting the payment side means total payments are shown less than actual, leaving the closing balance higher than it should be.

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