Bank Reconciliation

A bank statement showed a credit balance of $300 on 31 March. On that date unpresented cheques amounted to $120.

What was the cash book balance on 31 March?

• $180 credit

• B $180 debit

• $420 credit

• $420 debit

A bank statement balance and a cash book balance do not agree.

Which items arise from timing differences?

1 bank charges

2 bank errors

3 uncredited deposits

4 unpresented cheques

• 1 and 2 only

• 1, 2, 3 and 4

• 2, 3 and 4 only

• 3 and 4 only

Amber updated her cash book after receiving her bank statement. The updated cash book balance was an overdraft of $250.

The bank statement did not include cheques not presented, $96, and amounts not credited, $183.

What was the balance shown on the bank statement?

• $163 credit

• $163 debit

• $337 credit

• $337 debit

A cash book shows a debit balance on the bank account of $1200. There are unpresented cheques totalling $420.

Which balance appears on the bank statement?

• $780 credit

• $780 debit

• $1620 credit

• $1620 debit

A trader compared his cash book (bank column), which had a debit balance of $70, with his bank statement. He found that bank charges, $10, had not been recorded in his books, and that a cheque for $18 which he had issued had not been presented.

What was the balance on his bank statement?

• $62 credit

• $62 debit

• $78 credit

• $78 debit

Which statement about a bank reconciliation statement is correct?

• It includes items recorded by the trader not yet recorded by the bank.

• It is a copy of the trader’s account as it appears in the books of the bank.

• It is sent by the bank to the trader at regular intervals.

• It summarises the bank columns in a trader’s cash book.

What is true about a bank reconciliation statement?

• It forms part of the double entry system.

• It is a statement prepared by the bank.

• It is prepared to look for errors in the cash book and the bank

  statement.

• It reconciles the opening and closing cash book balances.

Jack’s bank statement showed a credit balance of $600 on 30 June. It contained bank charges, $20, which did not appear in the cash book. Cheques, $150, issued by Jack did not appear on the bank statement.

Which value for bank appeared in Jack’s statement of financial position on 30 June?

• $450 current asset

• $580 current asset

• $620 current liability

• $750 current liability

A trader’s cash book had a debit balance of $50. When the bank statement arrived he saw that a customer’s cheque for $80 had been dishonoured, and that the bank had charged him $10 in bank charges.

What was the balance on the cash book when it had been updated?

• $20 credit

• $40 credit

• $120 debit

• $140 debit

When Jack prepared his bank reconciliation statement it included an unpresented cheque.

Which cheque is unpresented?

• a cheque Jack received and banked but which has not appeared on his bank statement

• a cheque which appears on Jack’s bank statement but which has been omitted from his cash book

• a cheque which Jack has issued to a supplier who has not banked it

• a cheque debited twice in Jack’s bank statement in an error

  by the bank