Bank Reconciliation Statement · Class 11 · CBSE · Commerce Accountancy
What is a Bank Reconciliation Statement primarily prepared for?
Practice question from Bank Reconciliation Statement (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-A65811
What is a Bank Reconciliation Statement primarily prepared for?
- A.To ascertain the actual profit of the business
- B.To reconcile the differences between the cash book bank balance and the pass book balanceCorrect answer
- C.To rectify errors made in the journal and ledger
- D.To calculate the total cash sales made during a period
Solution
A Bank Reconciliation Statement (BRS) is prepared to identify and reconcile the causes of differences between the bank balance shown in the cash book and the balance shown in the pass book on a specific date.
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