Bank Reconciliation

Whenever money is deposited by the business, a credit entry in its records corresponds to a debit entry in the bank's records.

• True

• False

If the final balance of the bank statement is credit, it indicates that the business owes the bank money.

• True

• False

If the bank charges the business fees, the bank makes a credit entry in the bank statement.

• True

• False

The type of transactions recorded in a Cash Receipts Day Book are:

• all sales of inventories on credit

• all outgoings of cash from the business

• all cash received from any source

• all purchases of inventories on credit

The type of transactions recorded in a Cash Payments day book are:

• purchases of inventories on credit

• outgoings of cash from the business

• purchases of assets on credit

• sales of inventories for cash

If the final balance in the bank statement is £3500 Dr, unpresented cheques equal £200 and outstanding deposits total £400, the final balance in the business's bank account is:

• £3700 Dr

• £3700 Cr

• £3300 Cr

• £3300 Dr

If the final balance in the bank statement is £3900 Cr, unpresented cheques equal £500 and outstanding deposits total £900, the final balance in the business's bank account is:

• £4300 Dr

• £4300 Cr

• £3500 Cr

• £3500 Dr

If the final balance in the bank reconciliation statement is £5600 Dr, the opening balance in the bank account is £2100 Dr, the amount of payments during the month is £22400 and the amount of outstanding deposits is £300, the amount of receipts during the month is:

• £25900

• £14700

• £18900

• £14400

Items in the cash book which do not appear on the bank statement are usually caused by _______________ differences.

• amount

• timing

• description

A positive bank balance will appear as a ______________balance in the cash book.

• Debit

• Credit