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Bank Reconciliation Statement — Flashcards

NIOS · Class 12 · Accountancy

20 flashcards for Bank Reconciliation Statement (NIOS Class 12 Accountancy) to test yourself on key terms and facts.

44 questions20 flashcards5 concepts

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20 Flashcards·
Bank Reconciliation - Meaning and NeedBank Reconciliation - Key TermsBank Reconciliation - Balance TypesReasons for DifferenceReasons for Difference - Cheques IssuedReasons for Difference - Cheques DepositedReasons for Difference - Bank ChargesReasons for Difference - Direct Deposits
Card 1Bank Reconciliation - Meaning and Need

What is a Bank Reconciliation Statement and why is it important?

Answer

A Bank Reconciliation Statement is a statement prepared to reconcile the difference between the balances shown by the bank column of the cash book and the pass book on any given date. It is important …

Card 2Bank Reconciliation - Key Terms

Define 'Pass Book' and explain its relationship with the Cash Book.

Answer

Pass Book: A Pass Book is a copy of the customer's account maintained by the bank. It shows all deposits (credit entries) and withdrawals (debit entries) recorded by the bank for that customer. Relat…

Card 3Bank Reconciliation - Balance Types

Explain the difference between favourable balance and unfavourable balance in the context of bank reconciliation.

Answer

Favourable Balance: - This is when the bank account shows a positive balance (credit balance in pass book, debit balance in cash book) - The firm has more money in the bank than what has been withdraw…

Card 4Reasons for Difference

List the main reasons why the balance in the Cash Book differs from the balance in the Pass Book.

Answer

The nine main reasons for differences between Cash Book and Pass Book balances are: 1. **Cheques Issued But Not Yet Presented**: Cheques issued by the firm are immediately recorded in the cash book b…

Card 5Reasons for Difference - Cheques Issued

When cheques are issued by a firm but not yet presented for payment, how does this affect the reconciliation statement?

Answer

Effect of Cheques Issued But Not Presented: **Impact on Balances:** - Cash Book Balance: REDUCED (cheque recorded as payment immediately) - Pass Book Balance: NOT YET AFFECTED (bank hasn't debited th…

Card 6Reasons for Difference - Cheques Deposited

Explain how cheques deposited but not yet collected affect the Bank Reconciliation Statement.

Answer

Effect of Cheques Deposited But Not Yet Collected: **Impact on Balances:** - Cash Book Balance: INCREASED (firm records deposit immediately) - Pass Book Balance: NOT YET AFFECTED (bank hasn't credite…

Card 7Reasons for Difference - Bank Charges

How do bank charges affect the Bank Reconciliation Statement and why are they significant?

Answer

Effect of Bank Charges: **Nature of Bank Charges:** Bank charges include: - Fees for services (account maintenance, overdraft facility) - Interest on overdraft balance - Commission on cheque collecti…

Card 8Reasons for Difference - Direct Deposits

What is the impact of direct deposits by customers or debtors on bank reconciliation?

Answer

Effect of Direct Deposits by Customers/Debtors: **What Are Direct Deposits?** When customers or debtors deposit money directly into the firm's bank account without the firm's involvement in the depos…

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Frequently Asked Questions

What are the important topics in Bank Reconciliation Statement for NIOS Class 12 Accountancy?
Key topics in Bank Reconciliation Statement include Meaning and Need of Bank Reconciliation Statement, Reasons for Difference Between Cash Book and Pass Book Balances, Preparation of Bank Reconciliation Statement — Favourable Balance, Preparation of Bank Reconciliation Statement — Overdraft / Unfavourable Balance. Study these first, then practise questions on each for the NIOS Class 12 board exam.
How many flashcards are available for Bank Reconciliation Statement?
There are 20 flashcards for Bank Reconciliation Statement covering key definitions, facts and ideas. A few sample cards are shown on this page.
How should I revise Bank Reconciliation Statement for the NIOS Class 12 board exam?
Learn the core ideas first, then work through the 44 practice questions on Bank Reconciliation Statement. Revise definitions regularly and use flashcards for quick recall before the exam.

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Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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