BANK RECONCILIATION

True

False

1.

When Bank column of a Cash Book shows a credit balance, it means overdraft or amount due to the bank

X

2.

When the bank statement shows a credit balance, it means balance per bank statement or amount due from bank

X

3.

When Bank column of a Cash Book shows a debit balance, it means balance per Cash Book

X

4.

When the bank statement shows a debit balance, it means overdraft as per bank statement

X

5.

An unpresented cheque is a cheque given to company’s creditor but the creditor has not presented it for payment to your company’s bank account.

X

6.

When your customer pays you a cheque but it is still not credited into the bank, then it is called a bank lodgement which is not yet credited

X

7.

Cheques given by debtors not honored by their banks are dishonored cheques

X

8.

Bank reconciliation statement is prepared by the auditors

X

9.

Bank reconciliation statement is to reconcile cash at Bank Account with Bank Statement

X

10.

A bank overdraft is defined as a company which has too much receipts than payments

X