Bank Reconciliation Statement Practice Questions

You’re revising basics, but BRS still eats time in exams. One small sign mistake and the whole answer flips. Let’s fix that with clear formats, worked numbers, and the exact mistake patterns students repeat.

What is a Bank Reconciliation Statement (BRS) — and why exams love it

A Bank Reconciliation Statement (BRS) explains the difference between the bank balance as per your Cash Book and the balance as per the Bank Statement (Passbook) on a given date.

Why it matters:

• It tests logic, not memory.
• It mixes timing differences + errors.
• It’s easy marks if your steps are clean.

In KSA companies (and even during internships using Mu’tamad ERPs), reconciling bank balances is routine. Exams mirror real life.

Key idea (one line): Same bank account, two records, different timing → differences.

We’ll practise using SAR (﷼) amounts, exam-style.

Standard BRS format you should stick to in exams

There are two safe formats. Pick one and never mix signs.

Format A: Starting with Cash Book balance Balance as per Cash Book Add: Items credited by bank but not in cash book Less: Items debited by bank but not in cash book = Balance as per Bank Statement

Format B: Starting with Bank Statement balance (reverse logic).

Exam tip: CA Inter examiners don’t care which format you use. They care about correct treatment.

Quick memory rule

• Cheques issued but not presented → Deduct from Cash Book balance
• Cheques deposited but not cleared → Add to Cash Book balance

We’ll prove this with numbers below.

Practice Question 1: Timing differences (foundation level)

Question On 31 March 2026, the Cash Book of Ahmed Traders shows a bank balance of ﷼ 48,000. The Bank Statement shows a different balance due to the following:

1. Cheques issued but not presented: ﷼ 6,500
2. Cheques deposited but not cleared: ﷼ 9,200

Prepare the Bank Reconciliation Statement.

Solution (start with Cash Book): Balance as per Cash Book = ﷼ 48,000 Add: Cheques deposited but not cleared = ﷼ 9,200 Less: Cheques issued but not presented = ﷼ 6,500

Balance as per Bank Statement = ﷼ 50,700

Why this works:

• Deposited but not cleared → Cash Book already increased, bank hasn’t.
• Issued but not presented → Cash Book already reduced, bank hasn’t.

Practice Question 2: Bank charges and direct credits (CA Inter style)

Question The Cash Book of Noor Services shows a bank balance of ﷼ 72,300 on 30 June 2026. On checking the Bank Statement, you find:

• Bank charges debited by bank: ﷼ 350
• Customer directly deposited into bank: ﷼ 5,000
• Standing order paid for rent by bank: ﷼ 2,200

Prepare the BRS.

Understanding before calculation:

• These items are recorded by bank first, not in Cash Book.

Solution: Balance as per Cash Book = ﷼ 72,300 Add: Direct deposit by customer = ﷼ 5,000 Less: Bank charges = ﷼ 350 Less: Standing order for rent = ﷼ 2,200

Balance as per Bank Statement = ﷼ 74,750

Common mistake: Students add bank charges instead of deducting. Remember: charges reduce bank balance.

Practice Question 3: Errors in Cash Book and Bank Statement

Question The Cash Book of Faisal Trading shows a debit balance of ﷼ 39,600. The Bank Statement does not agree due to:

1. Cheque of ﷼ 4,800 deposited but wrongly recorded in Cash Book as ﷼ 4,080.
2. Bank wrongly debited account with ﷼ 1,200.
3. Cheques issued but not presented: ﷼ 7,000.

Prepare the BRS.

Step 1: Identify where the error is

• Error (1): Cash Book error (needs adjustment in BRS)
• Error (2): Bank error

Step 2: Prepare BRS (starting with Cash Book)

Balance as per Cash Book = ﷼ 39,600 Add: Cheque under-recorded (4,800 − 4,080) = ﷼ 720 Add: Bank wrongly debited = ﷼ 1,200 Less: Cheques issued but not presented = ﷼ 7,000

Balance as per Bank Statement = ﷼ 34,520

Examiner expectation: Show working for error differences. One line is enough.

Mid-revision checklist: How to avoid BRS sign mistakes

Situation	Effect on Cash Book	What to do in BRS (Start with Cash Book)
Cheque issued, not presented	Cash Book ↓	Less
Cheque deposited, not cleared	Cash Book ↑	Add
Bank charges	Not in Cash Book	Less
Direct credit by customer	Not in Cash Book	Add
Bank error (wrong debit)	Bank ↓ wrongly	Add
Cash Book error (overcasting)	Cash Book wrong	Adjust difference

Save this table. Revise it the night before exams.

Practice Question 4: Overdraft balance (students panic here)

Question On 31 December 2026, the Bank Statement of Sara Enterprises shows an overdraft of ﷼ 18,000. On comparison, you find:

• Cheques issued but not presented: ﷼ 6,400
• Interest on overdraft charged by bank: ﷼ 900
• Cheque deposited but not cleared: ﷼ 3,500

Prepare the BRS.

Important note

Overdraft = credit balance. Treat it carefully.

Solution (start with Bank Statement overdraft): Overdraft as per Bank Statement = ﷼ 18,000 Add: Cheques issued but not presented = ﷼ 6,400 Add: Cheque deposited but not cleared = ﷼ 3,500 Less: Interest on overdraft = ﷼ 900

Overdraft as per Cash Book = ﷼ 27,000

Common CA Inter error: Students forget overdraft signs and lose full marks.

How to practise BRS effectively before exams

1. Always write “Add” and “Less” clearly.
2. Circle whether you start with Cash Book or Bank Statement.
3. Do at least 10 mixed questions (timing + errors + overdraft).
4. Check logic, not just totals.

If you want instant practice with solutions, try the adaptive quizzes on SuperAccountant — they focus heavily on mistake patterns students actually make: https://app.superaccountant.in/en/quiz

For structured revision with peers (helpful when motivation dips), the guided cohorts are useful: https://app.superaccountant.in/en/cohort

Final words from someone who’s been there

BRS is not difficult — it’s unforgiving. One rushed sign and everything collapses. Slow down, follow the format, and treat every adjustment logically.

Once this clicks, BRS becomes one of the safest scoring areas in Accounting.

If you're not sure where to start, take SuperAccountant's free 10-minute quiz at https://app.superaccountant.in/en/quiz — it places you at the exact phase of our curriculum that matches your current level, so you stop revising what you already know.