NCERT Solutions For Class 11 Financial Accounting – Bank Reconciliation Statement
NCERT Solutions For Class 11 Financial Accounting – Bank Reconciliation Statement Short Answer Type Questions 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, ...