Important Questions Class 11 Accountancy Chapter 5 Bank Reconciliation Statement

Bank Reconciliation Statement is a statement that explains differences between the bank balance shown by the cash book and passbook. A cheque issued but not presented increases the passbook balance compared with the cash book balance.

Bank balance looks simple until the cash book and passbook show different figures on the same date. That difference is the real learning point in Important Questions Class 11 Accountancy Chapter 5. Bank Reconciliation Statement teaches students how to compare the bank column of the cash book with the bank statement, identify timing gaps, spot bank or business errors, and calculate the correct balance. In the NCERT 2026-27 syllabus, Chapter 5 covers the meaning, need, causes of difference, preparation of BRS, favourable balance, overdraft balance, and correct cash book balance.

Key Takeaways

  • Bank Reconciliation Statement checks one bank balance from two records: The cash book shows the business record, while the passbook shows the bank record.
  • Timing difference is the most common reason for mismatch: Cheques issued, cheques deposited, bank charges, direct deposits, and dishonoured cheques create differences.
  • Favourable balance and overdraft need opposite treatment: Students must first identify whether the starting balance is debit, credit, favourable, or unfavourable.
  • BRS questions reward format and direction: Correct addition, deduction, and balance placement matter more than long explanations.

Important Questions Class 11 Accountancy Chapter 5 Structure 2026

Key Area What To Revise Exam Use
BRS basics Meaning, need, cash book, passbook, favourable balance, overdraft Direct definitions and short answers
Causes of difference Cheques issued, cheques deposited, bank charges, direct deposits, dishonoured cheques Reasoning and treatment questions
BRS preparation Statement format, plus-minus column, overdraft cases, amended cash book Numerical and format-based questions

Bank Reconciliation Statement Class 11 Important Questions

Bank Reconciliation Statement helps a business compare its own bank record with the bank’s record. The chapter begins with a simple idea: the cash book and passbook may both be correct, yet still show different balances.

These bank reconciliation statement class 11 questions build the base before numerical practice.

Q1. What Is Bank Reconciliation Statement?

Bank Reconciliation Statement is a statement prepared to reconcile the bank balance shown by the cash book with the balance shown by the passbook.

It explains the items that caused the difference between both balances. It does not replace the cash book or passbook.

Q2. Why Is Bank Reconciliation Statement Prepared?

Bank Reconciliation Statement is prepared to find why the cash book and passbook show different bank balances.

It helps detect timing differences, omissions, and errors. It also helps confirm the correct bank balance on a particular date.

Q3. What Is A Cash Book In BRS?

Cash book is the business record of cash and bank transactions.

The bank column of the cash book shows deposits, withdrawals, cheques issued, cheques received, and bank-related payments recorded by the business.

Q4. What Is A Passbook In Bank Reconciliation Statement?

Passbook is a copy of the customer’s account as maintained by the bank.

It records deposits in the credit column and withdrawals in the debit column. It is also called a bank statement.

Q5. Why Can Cash Book And Passbook Balances Differ?

Cash book and passbook balances differ because some transactions are recorded earlier in one book and later in the other.

They can also differ because of errors made by the business or the bank. Cheques, bank charges, and direct deposits often create such differences.

Class 11 Accountancy Chapter 5 Important Questions On Causes Of Difference

BRS becomes easier when students know the reason behind each difference. Every item either increases or decreases the balance depending on the starting point.

These class 11 accountancy chapter 5 important questions focus on the causes of difference between cash book and passbook.

Q6. What Are Timing Differences In BRS?

Timing differences are differences caused by a time gap in recording the same transaction in the cash book and passbook.

For example, a cheque issued is recorded immediately in the cash book. The bank records it only when the cheque is presented for payment.

Q7. What Are Cheques Issued But Not Presented For Payment?

Cheques issued but not presented are cheques recorded in the cash book but not yet paid by the bank.

The cash book balance becomes lower immediately. The passbook balance remains higher until the cheque reaches the bank.

Q8. What Are Cheques Deposited But Not Cleared?

Cheques deposited but not cleared are cheques recorded in the cash book but not yet credited by the bank.

The cash book balance becomes higher immediately. The passbook balance remains lower until the bank collects the cheque amount.

Q9. What Are Direct Deposits By Customers?

Direct deposits are amounts deposited by customers directly into the business bank account.

The bank records them first. The business records them later after checking the bank statement.

Q10. What Are Direct Payments Made By Bank?

Direct payments are payments made by the bank on behalf of the customer.

Examples include insurance premium, rent, telephone bill, and taxes. The bank records them before the business updates the cash book.

Q11. What Are Bank Charges In BRS?

Bank charges are amounts deducted by the bank for services.

The passbook records bank charges immediately. The cash book records them only when the business receives bank information.

Q12. What Is A Dishonoured Cheque In BRS?

A dishonoured cheque is a cheque rejected by the bank for payment.

If a deposited cheque gets dishonoured, the bank debits the customer’s account. The cash book must be updated later.

BRS Class 11 Format For Bank Reconciliation Statement

A BRS format keeps the working clear. Students should always write the date because reconciliation is prepared for a particular day.

The NCERT shows BRS can be prepared in statement form or with plus and minus columns. The plus-minus format is easier for Class 11 numerical answers.

Bank Reconciliation Statement Format

Particulars Plus ₹ Minus ₹
Balance as per Cash Book / Passbook
Cheques issued but not presented
Cheques deposited but not cleared
Bank charges not recorded in cash book
Direct deposit by customer
Interest credited by bank
Insurance premium paid by bank
Dishonoured cheque not recorded in cash book
Balance as per Passbook / Cash Book

Students should not memorise the signs blindly. They should ask whether the given item makes the starting balance higher or lower.

Bank Reconciliation Statement Format Treatment Table

BRS questions test direction. The same item may be added or deducted depending on the starting balance.

Use this table when the question starts with a favourable debit balance as per cash book.

Item Treatment When Starting With Cash Book Debit Balance Reason
Cheques issued but not presented Add Passbook balance is higher
Cheques deposited but not cleared Deduct Passbook balance is lower
Bank charges Deduct Bank has reduced the balance
Interest credited by bank Add Bank has increased the balance
Direct deposit by customer Add Bank has recorded receipt first
Insurance paid by bank Deduct Bank has made payment first
Dishonoured cheque Deduct Bank has reduced the balance

When the starting point changes to passbook balance, the treatment becomes opposite. This rule is important in BRS numerical questions.

Favourable Balance As Per Cash Book Questions

A favourable balance means the business has money in the bank. In the cash book, it appears as debit balance.

These questions help students understand favourable balance as per cash book before solving BRS sums.

Q13. What Is Favourable Balance As Per Cash Book?

Favourable balance as per cash book means a debit balance in the bank column of the cash book.

It shows that the business has deposited more money than it has withdrawn from the bank.

Q14. What Is Favourable Balance As Per Passbook?

Favourable balance as per passbook means a credit balance in the passbook.

It means the bank owes money to the customer. It corresponds to debit balance in the cash book.

Q15. How Are Cheques Issued But Not Presented Treated When Cash Book Debit Balance Is Given?

Cheques issued but not presented are added when cash book debit balance is given.

The cash book has already reduced the bank balance. The passbook has not reduced it yet.

Q16. How Are Cheques Deposited But Not Cleared Treated When Cash Book Debit Balance Is Given?

Cheques deposited but not cleared are deducted when cash book debit balance is given.

The cash book has already increased the bank balance. The passbook has not increased it yet.

Q17. How Are Bank Charges Treated When Cash Book Debit Balance Is Given?

Bank charges are deducted when cash book debit balance is given.

The bank has already debited the charges in the passbook. The cash book has not recorded them yet.

BRS Class 11 Questions With Answers For Favourable Balance

Numerical BRS questions need one habit: mark the starting balance first. Then decide whether each item should increase or decrease that balance.

The following BRS class 11 questions with answers use the NCERT-style plus-minus approach.

Q18. Prepare BRS From Cash Book Balance ₹3,200, Cheques Issued ₹1,800, Cheques Deposited ₹2,000, And Bank Charges ₹150.

Balance as per passbook is ₹2,850.

Given Data:
Balance as per cash book = ₹3,200
Cheques issued but not presented = ₹1,800
Cheques deposited but not collected = ₹2,000
Bank charges = ₹150

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Balance as per Cash Book 3,200
Cheques issued but not presented 1,800
Cheques deposited but not collected 2,000
Bank charges 150
Balance as per Passbook 2,850
Total 5,000 5,000

Final Answer: Balance as per passbook is ₹2,850.

Q19. Prepare BRS When Cash Book Shows ₹7,800, Cheques Deposited ₹3,000, Cheques Issued ₹1,500, Insurance Paid ₹2,000, Interest Credited ₹400, Bank Charges ₹100, And Direct Deposit ₹4,000.

Balance as per passbook is ₹8,600.

Given Data:
Cash book balance = ₹7,800
Cheques deposited but not credited = ₹3,000
Cheques issued but not presented = ₹1,500
Insurance paid by bank = ₹2,000
Interest credited by bank = ₹400
Bank charges = ₹100
Direct deposit by customer = ₹4,000

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Balance as per Cash Book 7,800
Cheques issued but not presented 1,500
Interest credited by bank 400
Direct deposit by customer 4,000
Cheques deposited but not credited 3,000
Insurance paid by bank 2,000
Bank charges 100
Balance as per Passbook 8,600
Total 13,700 13,700

Final Answer: Balance as per passbook is ₹8,600.

Q20. Prepare BRS When Passbook Balance Is ₹7,000, Direct Deposit Is ₹1,000, Bank Interest Is ₹700, And Cheques Issued But Not Presented Are ₹1,000.

Balance as per cash book is ₹3,300.

Here, the question starts with passbook balance. Direct deposit and bank interest made passbook higher than cash book. Cheques issued but not presented also made passbook higher.

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Balance as per Passbook 7,000
Direct deposit by customer 1,000
Interest credited by bank 700
Cheques issued but not presented 1,000
Balance as per Cash Book 3,300
Total 7,000 7,000

Final Answer: Balance as per cash book is ₹3,300.

Overdraft As Per Cash Book Important Questions

Overdraft means the business has withdrawn more than its bank balance. In the cash book, overdraft appears as a credit balance.

Students should treat overdraft carefully because it behaves like a negative bank balance.

Q21. What Is Bank Overdraft?

Bank overdraft means the bank account shows a negative balance.

It happens when the business withdraws more than the amount deposited. In the cash book, overdraft appears as credit balance.

Q22. What Is Unfavourable Balance As Per Cash Book?

Unfavourable balance as per cash book means credit balance in the bank column of the cash book.

It shows that the business has used overdraft from the bank.

Q23. What Is Unfavourable Balance As Per Passbook?

Unfavourable balance as per passbook means debit balance in the passbook.

The bank records overdraft as debit because the customer owes money to the bank.

Q24. Why Is Overdraft Treated Differently In BRS?

Overdraft is treated differently because it represents a negative bank balance.

An item that increases overdraft reduces the financial position. An item that reduces overdraft improves the balance.

Bank Reconciliation Statement Questions With Answers On Overdraft

Overdraft questions look difficult because students confuse debit and credit balances. The safest method is to use the plus-minus format and balance both columns.

These bank reconciliation statement questions with answers follow the Class 11 treatment.

Q25. Prepare BRS When Overdraft As Per Cash Book Is ₹8,000, Cheques Deposited But Not Collected ₹2,000, Cheques Issued But Not Presented ₹800, Interest ₹60, And Bank Charges ₹100.

Overdraft as per passbook is ₹9,360.

Given Data:
Overdraft as per cash book = ₹8,000
Cheques deposited but not collected = ₹2,000
Cheques issued but not presented = ₹800
Interest debited by bank = ₹60
Bank charges = ₹100

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Overdraft as per Cash Book 8,000
Cheques deposited but not collected 2,000
Interest debited by bank 60
Bank charges 100
Cheques issued but not presented 800
Overdraft as per Passbook 9,360
Total 10,160 10,160

Final Answer: Overdraft as per passbook is ₹9,360.

Q26. Prepare BRS When Overdraft As Per Cash Book Is ₹10,000, Bank Charges ₹100, Interest ₹380, Cheques Issued But Not Encashsed ₹2,150, Interest On Investment ₹600, And Cheques Deposited But Not Cleared ₹1,100.

Overdraft as per passbook is ₹8,830.

Given Data:
Overdraft as per cash book = ₹10,000
Bank charges = ₹100
Interest on overdraft = ₹380
Cheques issued but not encashed = ₹2,150
Interest on investment collected = ₹600
Cheques deposited but not cleared = ₹1,100

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Overdraft as per Cash Book 10,000
Bank charges 100
Interest on overdraft 380
Cheques deposited but not cleared 1,100
Cheques issued but not encashed 2,150
Interest on investment collected 600
Overdraft as per Passbook 8,830
Total 11,580 11,580

Final Answer: Overdraft as per passbook is ₹8,830.

Q27. Prepare BRS When Overdraft As Per Passbook Is ₹20,000, Interest On Overdraft ₹2,000, Insurance Paid ₹200, Cheques Issued But Not Presented ₹6,500, Cheques Deposited But Not Cleared ₹6,000, And Wrong Debit By Bank ₹500.

Overdraft as per cash book is ₹17,800.

This question starts with overdraft as per passbook. Items already recorded by bank but not in cash book need reverse treatment to find cash book balance.

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Overdraft as per Passbook 20,000
Interest on overdraft 2,000
Insurance premium paid by bank 200
Cheques issued but not presented 6,500
Cheques deposited but not cleared 6,000
Wrongly debited by bank 500
Overdraft as per Cash Book 17,800
Total 26,500 26,500

Final Answer: Overdraft as per cash book is ₹17,800.

Causes Of Difference In BRS Important Questions

Cause-based questions appear in both short-answer and objective sections. Students should identify whether the item is a timing difference or an error.

These causes of difference in BRS questions are directly linked to the NCERT chapter explanation.

Q28. State Any Four Causes Of Difference Between Cash Book And Passbook.

Four causes are cheques issued but not presented, cheques deposited but not cleared, bank charges, and direct deposits by customers.

Other causes include interest credited by bank, dishonoured cheques, direct payments, and errors by business or bank.

Q29. How Do Errors By Business Create Difference In BRS?

Errors by business create difference when the cash book records a wrong amount, omits an entry, or totals incorrectly.

For example, a cheque of ₹5,000 recorded as ₹500 creates a difference between cash book and passbook.

Q30. How Do Errors By Bank Create Difference In BRS?

Errors by bank create difference when the passbook records a wrong amount or posts an entry to the wrong account.

For example, a cheque collected for one customer may be wrongly credited to another customer’s account.

Q31. Why Does A Dishonoured Cheque Reduce Passbook Balance?

A dishonoured cheque reduces passbook balance because the bank reverses the earlier credit.

The business may not record the dishonour immediately. This creates a difference until the cash book is updated.

Q32. Why Does Interest Credited By Bank Increase Passbook Balance?

Interest credited by bank increases passbook balance because the bank records the income first.

The cash book remains unchanged until the business records the bank interest.

BRS Numerical Questions Class 11 Board Exam Pattern

Numerical BRS questions usually give one balance and several reconciling items. Students should write the statement neatly and avoid mental calculation errors.

These BRS numerical questions class 11 follow common CBSE 2026 practice patterns.

Q33. Prepare BRS When Cash Book Balance Is ₹40,000, Cheques Deposited But Not Credited Are ₹15,000, Cheques Issued But Not Presented Are ₹15,000, Interest Credited Is ₹325, And Bank Charges Are ₹50.

Balance as per passbook is ₹40,275.

Given Data:
Cash book balance = ₹40,000
Cheques deposited but not credited = ₹2,000 + ₹5,000 + ₹8,000 = ₹15,000
Cheques issued but not presented = ₹7,000 + ₹8,000 = ₹15,000
Interest credited = ₹325
Bank charges = ₹50

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Balance as per Cash Book 40,000
Cheques issued but not presented 15,000
Interest credited by bank 325
Cheques deposited but not credited 15,000
Bank charges 50
Balance as per Passbook 40,275
Total 55,325 55,325

Final Answer: Balance as per passbook is ₹40,275.

Q34. Prepare BRS When Passbook Balance Is ₹50,000, Cheques Paid Into Bank But Not Credited Are ₹7,000, Cheque Entered But Not Banked Is ₹800, Cheques Issued But Not Credited Are ₹10,000, And Interest Collected Is ₹1,000.

Balance as per cash book is ₹47,800.

Given Data:
Passbook balance = ₹50,000
Cheques paid into bank but not credited = ₹2,000 + ₹5,000 = ₹7,000
Cheque entered but not banked = ₹800
Cheques issued but not presented = ₹10,000
Interest on investment collected by bank = ₹1,000

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Balance as per Passbook 50,000
Cheques paid into bank but not credited 7,000
Cheque entered but not banked 800
Cheques issued but not presented 10,000
Interest collected by bank 1,000
Balance as per Cash Book 47,800
Total 57,800 57,800

Final Answer: Balance as per cash book is ₹47,800.

Q35. Prepare BRS When Passbook Shows Overdraft ₹40,950, Cheque Issued But Not Encashsed ₹3,000, Interest Collected ₹3,800, Cheques Deposited But Not Collected ₹3,800, And Dishonoured Cheque ₹780.

Overdraft as per cash book is ₹43,170.

Given Data:
Overdraft as per passbook = ₹40,950
Cheque issued but not encashed = ₹3,000
Interest collected by bank = ₹3,800
Cheques deposited but not collected = ₹3,800
Dishonoured cheque = ₹780

Bank Reconciliation Statement:

Particulars Plus ₹ Minus ₹
Overdraft as per Passbook 40,950
Cheque issued but not encashed 3,000
Interest collected by bank 3,800
Cheques deposited but not collected 3,800
Dishonoured cheque 780
Overdraft as per Cash Book 43,170
Total 47,750 47,750

Final Answer: Overdraft as per cash book is ₹43,170.

Class 11 Accountancy BRS Important Questions For Quick Revision

A good BRS answer shows the logic behind each addition and deduction. Students should revise these short answers before practising more sums.

These class 11 accountancy BRS important questions are useful for viva-style and one-mark questions.

Q36. Who Prepares Bank Reconciliation Statement?

The account holder prepares the Bank Reconciliation Statement.

The bank prepares the passbook or bank statement. The business compares it with its cash book.

Q37. Is Bank Reconciliation Statement A Part Of Double Entry System?

Bank Reconciliation Statement is not a part of the double entry system.

It is only a statement prepared to explain differences. It does not have debit and credit posting like ledger accounts.

Q38. Is Favourable Balance As Per Cash Book Debit Or Credit?

Favourable balance as per cash book is debit balance.

It means the business has money available in the bank account.

Q39. Is Overdraft As Per Cash Book Debit Or Credit?

Overdraft as per cash book is credit balance.

It means the business has withdrawn more money than the amount available in the bank account.

Q40. What Does Debit Balance As Per Passbook Mean?

Debit balance as per passbook means bank overdraft.

The bank treats the customer as debtor because the customer owes money to the bank.

CBSE Class 11 Accountancy Important Questions Chapter-Wise

Sr No Chapters Chapter Name
1 Chapter 1 Introduction to Accounting
2 Chapter 2 Theory Base of Accounting
3 Chapter 3 Recording of Transactions– 1
4 Chapter 4 Recording of Transactions II (Financial Accounting – I)
5 Chapter 5 Bank Reconciliation Statement
6 Chapter 6 Trial Balance and Rectification of Errors
7 Chapter 7 Depreciation, Provisions, and Reserves
8 Chapter 8 Financial Statements – 1
9 Chapter 9 Financial Statements 2

Q.1 The bank column of a cash book showed a debit balance of 10,000 on 28 February 2021. Following differences were noticed after examining the books:
i. A cheque of 2,000 was deposited in the bank but not collected till date.
ii. A customer deposited 3,000 in the bank directly.
iii. Bank allowed an interest of 200.
iv. Bank debited the account by 50 for bank charges.
Prepare a Bank Reconciliation Statement as on 28th February, 2021.

Marks:4
Ans

Bank Reconciliation Statement

As on 28th Feb., 2021

Particulars Plus Items Minus Items
Dr. Balance as per Cash Book 10,000
Add: Direct deposit by customer 3,000
Interest allowed by bank 200
Less: Cheque deposited but not collected 2,000
Bank Charges 50
Cr. Balance as per Pass Book 11,150
13,200 13,200

Q.2 Mr. Steve maintains a cash book to keep the records of his bank transactions. On March 31, 2021, the balance as per his cash book stood at 24,000. On comparing with the pass book, he found the following discrepancies,
a. Cheques of 32,000 deposited into the bank out of which 8,000 cleared in the month of April, 2021.
b. Bank credited interest of Rs. 600 and debited charges of 200 which was not recorded in the cash book.
c. A cheque of 4,000 drawn in favor of Mr. William was recorded twice in the cash book.
Ascertain the balance as per the pass book as on March 31, 2021 by prepare Bank Reconciliation Statement.

Marks:4
Ans

Bank Reconciliation Statement

as on March 31,2021

Particulars (+) items Rs. (-) items Rs.
Balance as per the cash book 24,000
Less: cheques deposited but not cleared up to March 31, 2021 (8,000)
Add: Bank allowed interest 600
Less: Bank deducted charges (200)
Add: cheques drawn twice recorded in the cash book 4,000
Balance as per the pass book 20,400
28,600 28,600

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FAQs (Frequently Asked Questions)

Bank Reconciliation Statement is a statement that matches bank balance as per cash book with passbook. It explains differences caused by timing gaps and errors.

Prepare BRS by writing the starting balance, adding items that increase it, and deducting items that decrease it. Then calculate the balance as per the other book.

The main causes are cheques issued but not presented, cheques deposited but not cleared, bank charges, direct deposits, dishonoured cheques, and recording errors.

Favourable balance means the business has money in the bank. It appears as debit balance in cash book and credit balance in passbook.

Overdraft means withdrawals exceed deposits in the bank account. It appears as credit balance in cash book and debit balance in passbook.

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