Bank 2

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11_ Listed below are some possible causes of difference between the cash book

Balance and the bank statement balance when preparing a bank reconciliation:

(!) Cheque paid in, subsequently dishonored.


(2) Error by bank.
(3) Bank charges.
(4) Lodgments credited after date.
(5) Outstanding Cheques not yet presented.

Which of these items require an entry in the cash book?


A. 1 and 3 only
B. 1, 2, 3, 4, and 5
C. 2, 4 and 5 only
D. 1, 2 and3 only

12. Roshen plc bank balance per the bank statement is $4,450. However there are
Uncleared lodgments of $1,300 relating to cheques that Roshan plc banked yesterday
And unpresented cheques suppliers of $250.

What is the balance on Roshan plc bank account in her general ledger?

A. $3,400
B. $6,000
C. $5,500
D. $4,200

13. The cash book of fresh flowers records a bank overdraft of $3,750, however, when
Checking the cash book with the bank statement the following transactions were
Recorded on the bank statement but not in the cash book.

1. Customer cheque dishonored $1,650


2. Bank charges $450
3. standing order payment $150
What is the revised bank balance after making the necessary adjustments?

A. $4,200 overdrawn
B. $6,075 overdrawn
C. $1,425 overdrawn
D. $4,425 overdrawn
14. Why might a business produce a bank reconciliation statement?

A. To estimate next periods working capital requirement.


B. To calculate last periods profit.
C. To agree control accounts to day book totals.
D. To identify possible errors by the business.

15. On completion of the bank reconciliation statement which of the following entries will the
Cashier make in the firms cash book?

A. Bank charges levied since the last statement.


B. Cheques paid into the bank but not yet credited.
C. Cheques drawn by firm but not yet presented.
D. Cash paid into bank but not yet credited.

16. Your firm’s cash book at 30 April 2008 shows a balance at the bank of 2,490. Comparison
With the bank statement at the same date reveals the following differences.
1. Unpresented cheques $840
2. bank charges not in cash book $50
3. Receipts not yet credited by the bank $470
4. Dishonored cheque not in cash book $140

The correct balance at 30 April 2008 is:

A. $1,460
B. $2,300
C. $2,580
D. $3,140

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