TQ1: CHAPTER 9 - BANK RECONCILIATIONS

Which of the following will NOT affect the agreement of the cash at bank balance

with the bank statement balance?

• A -Bank charges

• B- Standing order

• C- Dishonoured cheques

• D -Cash payment to creditors

Which of the following statements best defines unpresented cheques?

• A- Cheques issued by the account holder but yet to be presented to the

  beneficiaries

• B- Cheques issued by the account holder but yet to be presented to the bank

  for payment.

• C- Cheques issued in favour of the account holder but yet to be presented to

  him.

• D- Cheques issued by the account holder but yet to be recorded in the books

In preparing a bank reconciliation statement, what action is required when a bank

statement does not show a credit balance?

• A- Unpresented cheques are added to the balance as per bank statement

• B- Uncredited lodgements are added to the balance as per bank statement

• C- Unpresented cheques are deducted from the balance as per bank

  statement

• D- Uncredited lodgements are deducted from the balance as per bank

  statement

A cheque payment posted to the credit side of the cash book, but not in the debit

column of the bank statement, is

• A- uncredited cheque

• B- dishonoured cheque

• C- standing order

• D- unpresented cheque

Which of the following does NOT cause a discrepancy between cash book and

bank statement balances?

• A- Direct credit found in the bank statement

• B- Credit sales posted to the debit side of the cash book (bank column)

• C- COT and other finance costs credited in the bank statement

• D- The company’s credit balance in the bank statement

A business entity makes a bank reconciliation each month. Which of the following

items in a bank reconciliation statement would require an entry to be made in the

entity's ledger accounts?

1 Bank charges

2 A dishonoured cheque that was used as payment by a customer

3 An error by the bank, which charged interest by mistake

4 Lodgements in the cash book that have not yet been included in the bank

statement

• A/ 1 and 2 only

• B/ 1 and 3 only

• C/ 1, 2 and 3 only

• D/ All four items

What is Prak’s cash balance after the necessary corrections have been made?

• A/ 6,009,000 KHR Dr

• B/ 2,609,000 KHR Dr

• C/ 5,498,000 KHR Dr

• D/ 5,809,000 KHR Dr

Assuming the amount of the overdraft per the bank statement of 39,800,000 is

correct, what should be the balance in the cash book?

• A/ 158,100,000 KHR overdrawn

• B/ 19,900,000 KHR overdrawn

• C/ 68,500,000 KHR overdrawn

• D/ 59,700,000 KHR overdrawn as stated

Which of the following statements about bank reconciliations are correct?

(1) A difference between the cash book and the bank statement must be

corrected by means of a journal entry.

(2) In preparing a bank reconciliation, lodgements recorded before date in the

cash book but credited by the bank after date should reduce an overdrawn

balance in the bank statement.

(3) Bank charges not yet entered in the cash book should be dealt with by an

adjustment in the bank reconciliation.

(4) If a cheque received from a customer is dishonoured after date, a credit

entry in the cash book is required.

• A/ 2 and 4

• B/ 1 and 4

• C/ 2 and 3

• D/ 1 and 3

Listed below are five potential causes of difference between a company’s cash

book balance and its bank statement balance as at 30th November 20X8:

(1) Cheques recorded and sent to suppliers before 30th November 20X8 but

not yet presented for payment.

(2) An error by the bank in crediting to another customer’s account a

lodgement made by the company.

(3) Bank charges.

(4) Cheques paid in before 30th November 20X8 but not credited by the bank

until 3rd December 20X8.

(5) A cheque recorded and paid in before 30th November 20X8 but

dishonoured by the bank.

Which of the following alternatives correctly analyses these items into those

requiring an entry in the cash book and those that would feature in the bank

reconciliation?

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