Top 100+ Bank Reconciliation Interview Questions And Answers
Question 1. Explain The Reasons Which Cause Pass Book Of The Bank And Your Bank Book Not Tally?
Answer :
Cheques deposited into the financial institution but now not yet accrued.
Cheques issued however no longer yet offered for fee.
Bank charges.
Amount collected by bank on status instructions of the concern.
Amount paid by using the financial institution on standing commands of the priority.
Interest debited by way of the financial institution.
Interest credited via the financial institution.
Direct price by means of customers into the financial institution account.
Dishonour of cheques.
Clerical errors.
Question 2. What Are The Important Things To Be Remembered While Preparing A Bank Reconciliation Statement?
Answer :
While making ready a financial institution reconciliation assertion following crucial points want to be remembered:
Bank Reconciliation Statement is prepared both by means of starting with the Bank bypass e-book balance or Cash e-book balance.
If the stability of the Cash ebook is taken as a place to begin then Cash e-book stability is to be adjusted according with the entries handed inside the Bank skip e-book and vice versa. For example: If the balance is taken as in step with the Cash e-book then the following objects will be brought:
Cheques issued however now not provided for charge?
Amount credited in Passbook however now not in Cash e book?
Deposits made within the bank immediately?
Wrong credits given by using bank?
Interest credited inside the Passbook.
The following objects might be subtracted:
Cheques deposited but now not cleared?
Interest/Bank Charges debited through bank
Direct payments made with the aid of financial institution now not entered in Cash e book
Cheques dishonoured not recorded in cash e book
Wrong debits given through bank
If it is ready with the Bank stability as according to the bank passbook, then the above procedure could be reversed i.E the items could be introduced to the bypass e book which were deducted from the coins e-book balance and those items can be deducted from the financial institution bypass e book balance which were brought to the coins e book balance.
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Question three. Explain Bank Reconciliation Statement. Why Is It Prepared?
Answer :
Bank Reconciliation Statement is a assertion prepared to reconcile the balances of cash book maintained by way of the concern and bypass book maintained by using the financial institution at periodical periods. At the cease of every month entries within the cash ebook are compared with the entries within the bypass e-book.
The reasons of differences in balances of both the books are scrutinized and then reconciliation declaration is ready. This statement is prepared for a unique reason and once in a month. It is prepared with a view to indicate items which reason difference among the balances as per the financial institution columns of the cash e book and the financial institution bypass ebook at a specific date.
Question four. Explain Step For Preparing A Bank Reconciliation Statement?
Answer :
Bank Reconciliation Statement is ready either by means of starting with the Bank bypass e-book balance or Cash e book balance.
If the balance of the Cash ebook is taken as a starting point then Cash e book balance is to be adjusted in accordance with the entries handed within the Bank bypass ebook and vice versa. For example: If the balance is taken as consistent with the Cash ebook then the following items might be brought:
Cheques issued however not presented for payment?
Amount credited in Passbook but not in Cash ebook?
Deposits made in the financial institution at once?
Wrong credit given with the aid of bank?
Interest credited inside the Passbook.
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Question 5. Explain Things To Avoid While Preparing A Bank Reconciliation Statement?
Answer :
Cheques deposited but not cleared?
Interest/Bank Charges debited by way of bank
Direct bills made through bank now not entered in Cash book
Cheques dishonored not recorded in coins e-book
Wrong debits given via bank
If it is prepared with the Bank stability as per the bank passbook, then the above method could be reversed i.E the gadgets could be brought to the pass ebook which had been deducted from the coins book stability and people gadgets may be deducted from the financial institution skip e book balance which have been added to the cash book balance.
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Question 6. What Should Be The Qualities Of Bank Reconciliation Clerk?
Answer :
In order to attain in this interview query, a green way is to offer a list of qualities and capabilities this is appropriate with an admin assistant position. You can start with “Firstly, an admin must have powerful methods, secondly, supply job the concern, thirdly, create an amazing group work” and so on. Remember that the obligation of an admin assistant is to communicate with several of human beings, so extraordinary communique abilities and an awesome personality are required.
Question 7. Who Maintains Bank Reconciliation Statement?
Answer :
Bank Reconciliation assertion is ready while financial institution stability as our books and financial institution balance as in keeping with pass book (i.E bank ebook) vary…it essentially organized to rectify the mistake happened during the financial institution transactions.
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Question eight. What Have You Done To Improve Your Knowledge For Bank Reconciliation Clerk Position In The Previous Year?
Answer :
Try to consist of development activities that relate to the task. A extensive type of sports can be mentioned as high-quality selfimprovement. Have a few accurate ones reachable to say.
Employers look for candidates who are intentionorientated. Show a desire for continuous learning with the aid of listing pursuits nonpaintings related. Regardless of what hobbies you pick to show off, remember the fact that the intention is to show selfsufficiency, time management, and motivation.
Question nine. What Items Will Be Subtracted While Preparing A Bank Reconciliation Statement?
Answer :
Cheques deposited but not cleared
Interest/Bank Charges debited by means of financial institution
Direct payments made via bank not entered in Cash ebook
Cheques dishonored not recorded in cash e-book
Wrong debits given by financial institution
If it is ready with the Bank stability as in step with the financial institution passbook, then the above procedure can be reversed i.E the items may be introduced to the pass e book which have been deducted from the cash e book stability and people objects might be deducted from the bank pass e-book balance which have been added to the coins book balance.
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Question 10. Tell Me What Are The Important Things To Be Remembered While Preparing A Bank Reconciliation Statement?
Answer :
Bank Reconciliation Statement is prepared both via starting with the Bank skip e-book stability or Cash book stability.
If the stability of the Cash e book is taken as a starting point then Cash book stability is to be adjusted according with the entries handed in the Bank pass book and vice versa. For example: If the balance is taken as consistent with the Cash e book then the following objects can be brought.
Cheques issued but no longer supplied for price.
Amount credited in Passbook however now not in Cash ebook.
Deposits made inside the bank without delay.
Wrong credits given by means of bank.
Interest credited within the Passbook.
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Question eleven. What Is Bank Reconciliation?
Answer :
A financial institution reconciliation is the process of matching the balances in an entity's accounting information for a cash account to the corresponding information on a bank announcement. The intention of this procedure is to examine the differences between the two, and to e-book adjustments to the accounting facts as suitable.
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Question 12. What Do You Mean By Bank Reconciliation Statement?
Answer :
A Bank reconciliation is a process that explains the difference among the bank stability proven in an organization's financial institution declaration, as provided by way of the bank, and the corresponding amount proven in the organisation's own [accounting] facts at a selected point of time.
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Question 13. What Is The Purpose Of Reconciling A Bank Statement?
Answer :
A financial institution reconciliation is used to evaluate your information to those of your bank, to see if there are any variations between these units of facts to your cash transactions. The ending stability of your version of the coins statistics is referred to as the ebook balance, at the same time as the bank's model is called the bank balance.
Question 14. What Is The Meaning Of Reconciliation Statement?
Answer :
A reconciliation assertion is a file that begins with a company's own document of an account stability, adds and subtracts reconciling items in a set of additional columns, after which uses these changes to reach on the record of the equal account held by means of a third birthday celebration.
Question 15. What Is Bank Reconciliation Statement With Example?
Answer :
A bank reconciliation is the process of matching the balances in an entity's accounting records for a coins account to the corresponding records on a financial institution assertion. The purpose of this method is to check the differences among the two, and to e-book modifications to the accounting records as appropriate.
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Question sixteen. What Do You Mean By Gl Reconciliation?
Answer :
General Ledger Reconciliation is the technique carried out by using accountants to verify the integrity of account balances at the organization's trendy ledger of money owed.
Question 17. What Is A Reconciliation Account?
Answer :
In accounting, Reconciliation is the manner of making sure that units of facts (commonly the balances of two accounts) are in agreement. Reconciliation is used to make certain that the cash leaving an account suits the actual money spent.
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Question 18. What Is A Reconciliation Process?
Answer :
Reconciliation is an accounting process that uses units of information to ensure figures are accurate and in agreement. Reconciliation is the key manner used to decide whether or not the cash leaving an account fits the amount spent, making sure the 2 values are balanced on the end of the recording duration.
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Question 19. What Is The Meaning Of Brs In Accounting?
Answer :
A financial institution reconciliation announcement is a summary of banking and commercial enterprise hobby that reconciles an entity's financial institution account with its monetary statistics. The announcement outlines the deposits, withdrawals, and other pastime impacting a bank account for a particular length.
Question 20. Why Is Bank Reconciliation Statement Prepared?
Answer :
Bank reconciliation declaration is a statement prepared on a specific day to reconcile the financial institution stability as in step with Cash ebook or Bank declaration displaying entries causing distinction among the 2 balances.
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Question 21. What Is The Importance Of Bank Reconciliation?
Answer :
Importance of Bank Reconciliation :
Preparation of financial institution reconciliation facilitates within the identification of mistakes within the accounting facts of the corporation or the bank.
Cash is the maximum vulnerable asset of an entity. Bank reconciliations offer the important manipulate mechanism to help defend the precious aid via uncovering irregularities along with unauthorized financial institution withdrawals.
However, so as for the manage technique to work effectively, it is essential to segregate the responsibilities of humans answerable for accounting and authorizing of bank transactions and those accountable for making ready and tracking bank reconciliation statements.
If the financial institution stability performing within the accounting records can be confirmed to be correct by way of comparing it with the bank declaration stability, it affords brought comfort that the financial institution transactions were recorded efficiently inside the business enterprise information.
Monthly training of bank reconciliation assists inside the ordinary tracking of cash flows of a enterprise.
Question 22. When Bank Reconciliation Statement Prepared?
Answer :
Normally Bank Reconciliation Statement is prepared with the aid of the trader on final date of bills, i.E., Dec. 31 or June 30 or March 31. Sometimes it is ready at the stop of each month after getting ready Cash Book or often after positive interval to test the accuracy of Cash Book. Statutory there may be no precise date to prepare it.
Question 23. What Are The Steps For Preparing A Bank Reconciliation Statement?
Answer :
Steps in getting ready a financial institution reconciliation statement:
Step 1 – Find the deposits in transit: The first step is to peer if one or extra deposits are in transit. You can accomplish that via comparing the deposits in your accounting document with the deposits proven for your financial institution assertion. If you find a deposit on your accounting document that has not been proven within the financial institution declaration, it method that deposit is in transit.
Add to the financial institution announcement stability all deposits which are in your accounting file however have no longer been entered inside the bank announcement.
Step 2 – Find top notch/unpresented assessments and deduct from bank declaration stability: Find all checks which you have issued however have not been offered for charge. You can accomplish that by means of comparing the assessments issued for your accounting file with the tests paid for your bank declaration. If your accounting report indicates that a test has been issued and your financial institution declaration does now not display a corresponding entry for that test, it manner it's far an fantastic or unpresented check.
Deduct from the bank statement balance all the assessments which you have issued and entered on your accounting report but have no longer been paid via the bank.
Step three – Find and add credit score memorandum for your accounting file: Bank troubles a credit score memorandum when it collects a notice receivable on behalf of the depositor. Find if there is any credit memorandum issued via the bank that you haven't entered inside the accounting report.
Add on your accounting report any credit score memorandum no longer entered on your accounting report.
Step 4 – Find and deduct debit memorandum out of your accounting report: Bank provides various services to its depositors consisting of printing tests, processing NSF assessments and collecting notes receivables and so forth. Bank deducts expenses from depositor’s account for those services and intimates her or him about such deductions by using issuing a debit memorandum. Find any debit memorandum now not recorded in your accounting record.
Deduct from your accounting report any debit memorandum issued by way of the financial institution but not entered within the accounting facts.
Step five – Are the adjusted balances equal? See whether adjusted balance of your accounting file is identical to the adjusted balance for your bank announcement.
Step 6 – Make appropriate journal entries: The final step in a bank reconciliation is to put together suitable journal entries for the gadgets that you have not recorded yet for your accounting records.
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Question 24. What Are The Reasons Of Difference Between Bank Records And Depositor’s Accounting Record?
Answer :
Most of the time the balance at the monthly financial institution declaration does now not consider the depositor’s accounting document. The regular motives of this disagreement are defined underneath:
Outstanding checks: Outstanding tests (additionally known as unpresented assessments) are the checks which have been issued with the aid of the agency to someone (a creditor, as an instance) but have not yet been provided for charge. The quantity of those assessments are recorded by the business enterprise however no entry is made with the aid of the bank before the cease of the month.
Deposit in transit: Deposit in transit means the cash obtained from a party has been recorded by the depositor but has no longer been entered through the bank inside the bank statement. It commonly occurs on the remaining day of the month.
Credits for hobby earned: Banks pay interest on a few money owed. If this hobby is credited inside the depositor’s account without intimating to the depositor, the bank assertion and the depositor’s file will no longer agree.
Service charges: Banks offer various services to its clients and deduct service costs from their bills. The depositors generally aren't aware about such deductions. These fees create a difference of stability between bank assertion and the depositor’s report.
NSF Check: NSF stands for Not Sufficient Funds. When a consumer deposits a take a look at in his account, the financial institution at once credit his account with the quantity of the check. Sometime such exams are not honored because the person issuing the take a look at does not have enough funds in his account. In this type of scenario, the bank reduces the balance of the purchaser. The dishonored test is returned to the depositor as NSF check.
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Question 25. Which Items On A Bank Reconciliation Will Require A Journal Entry?
Answer :
The objects on the financial institution reconciliation with the intention to require a magazine entry are the gadgets noted as "changes to books." These items did seem at the bank declaration, however they did now not appear on the company's books.
