Course:
CMA Foundation
1) Payment done by the account holder through issuing a cheque is entered in the passbook:
(a) At the time of issuing the cheque
(b) At the time of presenting the cheque to the bank for payment
2) A Bank Reconciliation Statement is prepared to know the causes for the difference between:
(a) The balances as per cash column of Cash Book and the Pass Book
(b) The balance as per bank column of Cash Book and the Pass Book
(c) The balance as per bank column of Cash Book and balances as per cash column of Cash Book
(d) Neither of the above
3) Pass book balance will be equal to the cash book balance if:
(a) Cheques deposited in to bank are collected
(b) Cheques issued are not presented for payment
(c) Direct deposit by customers in the Bank, has not been intimated to the business man
(d) The business man has no information about interest credited by bank
4) If the cheque is not presented for the payment up to the date of the preparation of Bank
Reconciliation statement, then the balance as per pass book will be:
(a) Higher than the balance shown by the cashbook by the amount of unrepresented cheque
(b) Lower than the balance shown by the cashbook by the amount of unrepresented cheque(c) same as shown by the cashbook
(d) None of the above
5) Under Bank Reconciliation Statement, while adjusting the cash book – (a) All the errors and commission in the cash book are taken into consideration
(b) All the errors and commission in the pass book are taken into consideration
(c) Delays in recording in the passbook due to deference in timing are taken into consideration
(d) All of the above
6) The bank reconciliation statement is started with –
(a) Bank column balance of the cash book
(b) Cash column balance of the cash book
(c) Pass Book Balance
(d) Bank column balance of cash book or pass book balance
7) Credit balance in the cash book means –
(a) Overdraft (b) Favorable Balance
(c) Either (a) or (b) (d) Neither (a) or (b)
8) Favourable balance as per Cash book means –
(a) Debit balance in the Bank column of cash book
(b) Credit balance in the Bank column of cash book
(c) Overdraft as per cash book
(d) Debit balance in the pass book
9) While adjusting the cash balance which one of the following is not taken into account –
(a) Payment directly received by bank as per instructions
(b) Payment directly made by the bank as per standing instructions
(c) Mistake in the Cash Book
(d) Mistake in the Pass Book
10) Mr. X had two accounts one current account and another saving bank A/c in a nationalizedbank. He drew a cheque of Rs.5,000 on saving bank but credited to current A/c in his cash
book. Similarly, a cheque of Rs.2,000 deposited in current A/c was debited to Saving bank
A/c. What would be effect of these errors in Bank pass books/Bank statement of these two
A/c’s –
(a) Current A/c balance would be less by Rs.2000 and saving A/c balance more by Rs.5000(b) Current A/c balance would be more by Rs.2000 and saving A/c balance less by Rs.5000(c) Current A/c balance would be less by Rs.5000 and saving A/c balance more by Rs.2000(d) Current A/c balance would be more by Rs.5000 and saving A/c balance less by Rs.200011) Unfavorable balance as per bank pass book means which of these –
(a) Bank Overdraft (b) Debit bal. in pass book
(c) Debit bal. in cash book (d) Both (a) & (b)
12) Entry in debit side of bank pass book implies –
(a) Cash withdrawn (b) Business receipts
(c) Cash/cheque deposited in bank (d) Personal receipts
13) There was difference in bank column of Cash book and pass book by Rs. 2,500 on securityitwas found that interest of Rs. 500 charged directly by bank was not entered in cash book. The
same was adjusted in the cash book before reconciliation statement. Now in bank
reconciliation statement, interest of Rs. 500 is to be –
(a) Added to the cash book balance
(b) Subtracted from the cash book balance
(c) Ignored while preparing BRS
(d) None of the above
14) The total payment side of Cash book is Rs. 700 short, if Bank Reconciliation statement is startedwith passbook (overdraft) balance then –
(a) Rs. 700 will be less (b) Rs. 700 will be added
(c) Rs. 900 will be less (d) None of the above
15) The cash book shows a balance of Rs. 11,000 which was difference from the pass book balance.
The difference is found to be due to a credit entry in pass book amounting to Rs. 2,000 for
direct payment by a customer and a debit of Rs. 250 for Bank charges on collection of outstation
cheques and other services. What would be the balance as per Bank Pass Book?
(a) Rs. 12,750 (b) Rs. 12,250
(c) Rs. 13,750 (d) Rs. 13,500
16) Mr. T issued cheques worth Rs.25,000 in March 2022 out of which cheques worth Rs.10,000onlywere presented for payment by 31st March 2022 balance as per pass book was Rs.45,000. What
would be balance as per Cash book?
(a) Rs. 30,000 (b) Rs. 20,000
(c) Rs. 25,000 (d) Rs. 15,000
17) Debit balance as per Cash Book of ABC Ent. as on 31.3.22 is Rs.1,500. Cheques deposited but not
cleared amounts to Rs.100 and Cheques issued but not presented of Rs.150. The bank allowed
interest amounting Rs.50 and collected dividend Rs.50. Balance as per pass book should be-
(a) Rs. 1,600 (b) Rs. 1,450
(c) Rs. 1,850 (d) Rs. 1,650
18) Balance as per cash book is Rs. 5,000. Cheques issued but not presented for payment Rs. 2,000
and cheque sent for collected Rs. 1,500. The bank was wrongly debited the account of firm by
Rs. 200 Balance as per passbook will be –
54 | U N I Q U E A C A D E M Y F O R C O M M E R C E
(a) Rs. 5,500 (b) Rs. 5,300
(c) Rs. 5,700 (d) Rs. 8,300
19) Bank overdraft as per Cash book Rs. 13,500.
Cheques deposited but not credited Rs. 3,000.
Cheque issued but not presented Rs. 6,000.
Overdraft as per Bank statement will be:
(a) Rs. 10,500 (b) Rs. 10,000
(c) Rs. 11,000 (d) None of the above
20) Overdraft as per Cash book on 31st December 2022 Rs. 10,500
Cheques sent for collection but not collected Rs. 8,250
Cheque issued but not presented for payment Rs.12,000
Overdraft as per Pass book overdraft will be:
(a) Rs. 6,750 (b) Rs. 6,500
(c) Rs. 6,000 (d) None of the above
21) Bank overdraft as per trial balance is Rs. 1,60,000. Bank has allowed the customer to overview80% of the hypothecated value of the stock. Hypothecation of stock has been done by the
bank at 80% of the original closing stock value. The amount of closing stock is –
(a) Rs. 2,00,000 (b) Rs. 2,50,000
(c) Rs. 1,02,400 (d) Rs. 1,28,000
22) An amount of Rs.2,500 is debited twice in the bank column of cash book. When credit balanceas per pass book is the starting point which one of these adjustments would be done at the
time of reconciliation –
(a) Add Rs.2,500 is balance as per pass book
(b) Deduct Rs.2,500 to balance as per pass book
(c) Add Rs.5,000 to balance as per pass book
(d) Deduct Rs.5,000 to balance as per pass book
23) Rs. 27,000 was transferred from bank Account no II to Bank Account No I by the bank without
advice to Bharat. In the BRS as on 31-12-2009, starting with Cash book balance this item will be-
(a) Added to cash book balance of A/c I and deducted from the Cash book balance of A/c II(b) Deducted from cash book balance of A/c I and II
(c) Ignored as Contra Entry
(d) Deducted from cash book balance of A/c I and added to cash book balance of A/c II
24) A cheque for Rs. 5,000 issued to Eshwar was recorded in the Cash book for Rs. 500. In theBRS,
starting with Cash book balance –
(a) Rs. 4,500 will be added to Cash book balance
(b) Rs. 4,500 will be deducted from Cash book balance
(c) Rs. 500 will be deducted from Cash book balance
(d) Rs. 5,000 will be added to Cash book balance
25) The receipts side of the Cash Book was overcast by Rs. 1,000. In the BRS, starting with Cash
book balance –
(a) Rs. 2,000 will be added to Cash book balance
(b) Rs. 1,000 will be deducted from Cash book balance
(c) This will be ignored
(d) Rs. 1,000 will be deducted from Cash book balance
26) A cheque deposited amounting to Rs. 1,000 is dishonored. Bank has debited the amount of the
cheque and Rs. 15 for its charges. In the BRS, starting with Cash book balance –
(a) Rs. 1,000 will be added to and Rs. 15 will be deducted from Cash book balance
(b) Rs. 1,015 will be deducted from Cash book balance
(c) Rs. 1,000 will be added to Cash book balance
(d) Rs. 1,000 will be deducted from and Rs. 15 will be added to Cash book balance
27) When balance as per Cash Book is the starting point and cheque issued for payment of Rs. 400was wrongly credited by bank as Rs. 900. The Bank reconciliation statement cash balance will
be:
(a) Added by Rs. 1,300 (b) Subtracted by Rs. 1,300
(c) Added by Rs. 900 (d) Subtracted by Rs. 400
28) The debit side of the pass book was under cast by Rs. 7,000. In the BRS, starting with Cashbook balance –
(a) Rs. 14,000 will be added to Cash book balance
(b) Rs. 7,000 will be deducted from Cash book balance
(c) This will be ignored
(d) Rs. 7,000 will be added to Cash book balance
29) A cheque for Rs. 9,000 drawn in favor of Iran was recorded properly property in theCashbook. But it was not sent to him by mistake. In the BRS, starting with Cash book balance –
(a) Rs. 9,000 will be added to Cash book balance
(b) Rs. 9,000 will be deducted from Cash book balance
(c) This will be ignored
(d) Rs. 18,000 will be added to Cash book balance
30) A cheque of Rs. 6,000 issued to Virat was recorded on the receipt side of the Cash book. Inthe BRS, starting with Cash book balance –
(a) Rs. 12,000 will be deducted to Cash book balance
(b) Rs. 6,000 will be deducted from Cash book balance
(c) Rs. 6,000 will be added to Cash book balance
(d) This will be ignored
31) Bank has credited interest on investments Rs. 750, which is not recorded in cash book. In the
BRS starting with Cash Book Balance, this item will be –
(a) Added to Cash Book Balance
(b) Deducted from Cash Book Balance
(c) Ignored
(d) Deducted twice from Cash Book Balance
32) When credit balance as per pass book is the starting point, Bank charges are –
(a) Subtracted (b) Added
(c) Neither of the two (d) None
33) When the balance as per pass book is the starting point cheques sent for collection but notcollected are –
(a) Added in the Bank Reconciliation statement
(b) Deducted in the Bank Reconciliation statement
(c) Not required to be adjusted in BRS
(d) Neither of the above
34) Bank has credited interest Rs. 200 and debited Rs. 50 for commission in the Pass Book. In the
BRS starting with Cash Book Balance, this item will be –
(a) Rs. 200 will be added and Rs. 50 will be deducted from pass book balance
(b) Rs. 200 will be deducted from and Rs. 50 will be added from pass book balance
(c) Rs. 200 will be added to pass book balance
(d) Rs. 200 will be deducted from pass book balance
35) Pass book showed Rs. 1,500 as cheque dishonored and Rs. 15 as bank charges. In BRS starting with
pass book –
(a) Rs. 1,500 will be added and Rs. 15 will be deducted from pass book balance
(b) Rs. 1,500 will be deducted from and Rs. 15 will be added from pass book balance
(c) Rs. 1,515 will be added to pass book balance
(d) Rs. 1,515 will be deducted from pass book balance
36) Bank had directly paid insurance premium of Rs. 150. In the BRS starting with Pass Book
Balance-
(a) Rs. 150 will be added to pass book balance
(b) Rs. 300 will be added to pass book balance
(c) Rs. 150 will be added to cash book balance
(d) This will be ignored
37) Mr. Krishan prasad a doctor deposited Rs. 300 cash directly in the Bank account. In the BRSstarting with Pass Book Balance –
(a) Rs. 300 will be added to pass book balance
(b) Rs. 600 will be deducted from pass book balance
(c) This will be ignored as a contra entry
(d) Rs. 300 will be deducted from pass book balance
38) Of the cheques of Rs. 3,500 issued creditors, cheques amounting to only Rs. 2,500 were –
presented to the bank. In the BRS starting with Pass Book Balance
(a) Rs. 1,000 will be added to Pass book balance
(b) Rs. 3,500 will be deducted from Pass book balance
(c) Rs. 3,500 will be added to Pass book balance
(d) Rs. 1,000 will be deducted from Pass book balance
39) When overdraft balance as per cash book is the starting point wrong debit in the pass bookwill-
(a) Remain same (b) Added
(c) Deducted (d) None of the above
40) When the overdraft as per cash book is the starting point, a cheque of Rs. 500 depositedintoBank but not recorded in cash book will be –
(a) Added by Rs. 500 (b) Deducted by Rs. 500
(c) Added by Rs. 1,000 (d) Deducted by Rs. 1,000
41) When favorable balance as per cash book is the starting point, wrong debit by the Bank tothefirm will be –
(a) Added (b) Subtracted
(c) Both (d) None
42) Overdraft as per cash book means –
(a) Credit balance is the cash book (b) Credit balance in the pass book
(c) Debit Balance as per pass book (d) Both (a) & (c)
43) If balance as per pass book is the starting point, then uncollected cheques are –
(a) Added in BRS (b) Subtracted in BRS
(c) Ignored while preparing BRS (d) None of the above
44) In the BRS, starting with balance as per Cash book Wages 200:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
45) In the BRS, starting with balance as per Cash book cheque to Salokhe for Rs. 200:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
46) In the BRS, starting with balance as per Cash book, interest Rs. 50:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
47) In the BRS, starting with balance as per Cash book cheque for power for Rs. 50:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
48) In the BRS, starting with balance as per Cash book Cheque from Kasar for Rs. 100:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
49) In the BRS, starting with balance as per Cash book Cheque for sale for Rs 200.
(a) Will be ignored
(b) Will be deducted from Cash book balance (c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
50) In the BRS, starting with balance as per Cash book bank charges Rs. 25:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
ANSWERS:
1) (b)
2) (b)
3) (a)
4) (a)
5) (a)
6) (d)
7) (a)
8) (a)
9) (d)
10) (d)
11) (d)
12) (a)
13) (c)
14) (a)
15) (a)
16) (a)
17) (d)
18) (c)
19) (a)
20) (a)
21) (b)
22) (a)
23) (a)
24) (b)
25) (b)
26) (b)
27) (a)
28) (d)
29) (a)
30) (a)
31) (a)
32) (b)
33) (a)
34) (a)
35) (c)
36) (a)
37) (d)
38) (d)
39) (b)
40) (b)
41) (b)
42) (d)
43) (a)
44) (a)
45) (c)
46) (a)
47) (c)
48) (b)
49) (b)
50) (a)