IGCSE Bank Reconciliation

At the year end a cash book shows a credit balance of $4800.

The bank statement included bank charges of $25 which had not been included in the cash book.

Cheque payments entered in the cash book before the year end to the value of $250 had not yet cleared the bank.

How would the bank balance be shown in the statement of financial position?

• current asset 4775

• current liability 4825

• current asset 5025

• current liability 5075

The following items are recorded in the cash book of a business but not yet recorded in its bank statement.

cheques drawn $3000

amounts banked $250

The cash book shows a bank balance of $2600 credit.

What is the balance on the bank statement?

• $150 credit

• $150 debit

• $400 credit

• $400 debit

The cash book of a business shows a debit balance of $4200 at 30 April. A direct debit payment of $200 for insurance appeared on the bank statement but had not yet been entered in the cash book.

A cheque paid to a supplier, correctly entered as $650 in the cash book, appeared as $690 on the bank statement.

What is the value of bank shown in the statement of financial position at 30 April?

• $3960

• $4000

• $4360

• $4400

The bank column of a cash book showed a credit balance of $5000. There were unpresented cheques amounting to $1500. The bank statement showed bank charges, $700, which were not recorded in the cash book.

What is the balance on the bank statement?

• $4200 credit

• $4200 debit

• $5800 credit

• $5800 debit

Fred wishes to identify the unpresented cheques of his business.

Which side of the cash book and which column of the bank statement does he need to compare?

• cash book credit side

  bank statement credit column

• cash book credit side

  bank statement debit column

• cash book debit side

  bank statement credit column

• cash book debit side

  bank statement debit column

A bank statement shows a credit balance of $1500.

A payment of $500 and a receipt of $1250 were included in the cash book but have not yet appeared on the bank statement.

Bank interest payable of $1100 had been correctly recorded in the cash book but due to a bank

error had been recorded in the bank statement as $1000.

What is the cash book balance?

• $650

• $850

• $2150

• $3350

A book-keeper compared the business bank statement with the cash book. He then updated the cash book and finally prepared a bank reconciliation statement.

Why was the bank reconciliation statement prepared?

• to ensure no transactions had been omitted from the cash book

• to establish the value of unpresented cheques

• to explain the difference between the cash book balance and the bank statement balance

• to find out if any cheques had been dishonoured

A bank reconciliation statement shows a credit balance of $400 in the cash book and a balance in hand of $100 in the bank statements.

The bank reconciliation statement includes unpresented cheques of $700 in addition to cheques banked and not yet credited in the bank statements.

What is the total of cheques banked and not yet credited?

• $200

• $400

• $1000

• $1200