A. The Trial Balance will not agree
B. The balance of creditors is understated
C. The purchases are understated
D. The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

D. The favourable bank balance as per Pass Book will be less than the bank balance as per Cash Book, since the debit in the bank account is more than the debit in the Cash Book D.. As debit and credit are for equal amount there is no disagreement of the Trial Balance; Creditors balance is overstated but not understated: The favourable bank balance as per Pass Book will be less than the Bank balance as per Cash Book, since the debit in the Bank Account is more than the debit in the Cash book. Purchases are not affected, as it is a payment to the creditor. Thus, the correct answer is D.

Related Mcqs:

  1. The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to

    A. Discounting of the bill with the bank
    B. Payment of the bill on due date
    C. Remitting or receiving the amount
    D. Sending the bill to bank for collection
    Read More Details about this Mcq

  2. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).

    A. Cash receipt journal
    B. Cash payment journal
    C. Cash book
    D. Financial statements

  3. In bank reconciliation statement the amount of outstanding checks is added to ________ balance of cash book.

    A. Adjusted
    B. Unadjusted
    C. Understated
    D. Overstated

  4. Which of these documents is not required for Bank Reconciliation?

    A. Bank column of Cash Book
    B. Bank Pass Book
    C. Bank Statement
    D. Trial Balance

  5. The Bank Reconciliation Statement is prepared?

    A. To rectify the mistakes in the Cash Book
    B. To arrive at the Bank Balance
    C. To arrive at the Cash Balance
    D. To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement

    Read More About This Mcq

  6. Bank reconciliation is a statement prepared to reconcile__________?

    A. Trial balance
    B. Cash book
    C. Bank A/c
    D. Cash as per cash book with bank balance as per bank pass book

  7. Bank reconciliation statement is a part of_________?

    A. Cash book
    B. Trial balance
    C. Auditors report
    D. None of these

  8. Benefits of preparing Bank Reconciliation Statement includes___________?

    A. It bring out any errors committed in preparation of Cash book / Bank Pass Book
    B. Highlights under delay in clearance of cheques deposited but not credited
    C. Help know actual bank balance
    D. All the three

  9. Bank reconciliation statement is prepared by____________?

    A. Accountant of the business
    B. Manager of the business
    C. Controller of the bank
    D. Accountant of the bank

  10. In the Bank reconciliation statement “Deposit in transit” is usually:

    A. Subtracted from bank balance
    B. Added to bank balance
    C. Added to Cash book balance
    D. Subtracted from cash book balance

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Accounting Mcqs
Accounting Mcqs,

Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. accounting mcqs for accountant. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant.

Principles of Accounting, Accounting Equation, Analyzing & Classifying Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments.

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