Question

Statement-I: Bank Reconciliation Statement is prepared annually to reconcile balance as per Cash Book with balance as per Bank Statement. Statement-II: Bank Reconciliation statement is prepared by the bank and also the account holder.

• A. Both the statements are false.
• B. Both the statements are true.
• C. Only statement-II is true.
• D. Only statement-I is true.

Hint:

A Bank Reconciliation Statement (BRS) helps identify errors, omissions, or timing differences between the Cash Book and Bank Statement.

Answer 1

The Correct Option is D

- Statement-I is correct: A Bank Reconciliation Statement (BRS) is prepared to reconcile the difference between the balance as per the Cash Book and the Bank Statement. It ensures accurate accounting records.
- Statement-II is incorrect: The bank does not prepare the BRS. It is prepared only by the account holder to identify discrepancies.