NCERT Solutions class 11 Accountancy Chapter 5 Bank Reconciliation Statemen. NCERT book for Accountancy in class 11 is strongly recommened by teachers and the CBSE and NCERT boards. Please download the NCERT solutions for class 11 Accountancy free in PDF made by teachers of the best schools in India. These solutions are carefully compiled to give detailed understanding of the concepts and also steps of solutions. The NCERT solutions are free to download in pdf format. Please refer to the download link below to download the pdf file and also refer to other chapters and subjects to get the solutions to Accounts NCERT book questions and exercises.
Q1. State the need for the preparation of bank reconciliation statement?
Solution: The need and importance of the bank reconciliation statement are as follows:
It ensures accuracy of the balances and records shown by the pass book and cash book.
It detects the errors which might have occurred in a cash book in connection with bank transactions and helps in rectifying those errors.
Regular preparation of bank reconciliation statement helps in prevention of frauds.
It detects any undue delay caused during the recording of transactions or collection of cheques.
This helps in taking appropriate action to prevent any further delay.
It keeps a check on the accuracy of entries made in both the books.
It helps in updating the cash book as per the pass book.
Q2. What is a bank overdraft?
Solution: When a firm or an account holder withdraws excess amount over the available bank balance, the account, then, runs a negative bank balance. The negative balance is called a bank overdraft. In other words, bank overdraft is the excess of withdrawals over deposits and is considered a liability to an account holder.
Q3. Briefly explain the statement ‘wrongly debited by the bank’ with the help of an example.
Solution: The statement ‘Wrongly debited by the bank’ is alleged when the bank wrongly debits the customer’s account. A wrong debit reduces the account balance of the customer. Wrong debits occur when a transaction is wrongly recorded or when incorrect amount is debited from an account. Such errors can occur in the following two cases:
A person has more than one account in a bank: A cheque of Rs.4,000 issued from his/her savings account was wrongly paid through his/her current account.
Amounts of cheques are wrongly recorded: A cheque payment of Rs.60,000 was wrongly debited in the pass book as Rs.6,000.
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