Answer true or false for the following bank reconciliation statement:
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1. |
When Bank column of a Cash Book shows a credit balance, it means overdraft or amount due to the bank |
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2. |
When the bank statement shows a credit balance, it means balance per bank statement or amount due from bank |
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3. |
When Bank column of a Cash Book shows a debit balance, it means balance per Cash Book |
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4. |
When the bank statement shows a debit balance, it means overdraft as per bank statement |
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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. |
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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 |
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7. |
Cheques given by debtors not honored by their banks are dishonored cheques |
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8. |
Bank reconciliation statement is prepared by the auditors |
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9. |
Bank reconciliation statement is to reconcile cash at Bank Account with Bank Statement |
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10. |
A bank overdraft is defined as a company which has too much receipts than payments |
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