FA - Bank Reconciliation statement

The cash book of Worcester shows a credit balance of $1,350. Cheques of $56 have been written to suppliers but not yet cleared the bank; uncleared lodgements amount to $128. The bank has accidentally credited Worcester’s account with interest of $15 due to another customer.

A standing order of $300 has not been accounted for in the general ledger.

What is the balance on the bank statement?

• $993 Cr

• $993 Dr

• $1,707 Cr

• $1,707 Dr

Jo’s bank ledger account shows a balance of $190 credit. Her bank statement reports a balance of $250 credit. Which of the following will explain the difference in full?

• Unpresented cheques of $100 and an uncleared lodgement of $30

• Unpresented cheques of $150, the misposting of a cash receipt of $130 to the wrong side of the cash account and unrecorded bank interest received of $30

• An unrecorded direct debit of $30, a dishonoured cheque of $70 and an uncleared lodgement of $40

• An unrecorded standing order of $60, an unpresented cheque of $110 and a bank error whereby Jo’s account was accidentally credited with $110

Which of the following statements about bank reconciliations are correct?

(1) In preparing a bank reconciliation, unpresented cheques must be deducted from a balance of cash at bank shown in the bank statement.

(2) A cheque from a customer paid into the bank but dishonoured must be corrected by making a debit entry in the cash book.

(3) An error by the bank must be corrected by an entry in the cash book.

(4) An overdraft is a debit balance in the bank statement.

• (1) and (3)

• (2) and (3)

• (1) and (4)

• (2) and (4)

The following bank reconciliation statement has been prepared by an inexperienced bookkeeper at 31 December 20X5:

What should the final cash book balance be when all the above items have been properly accounted for?

• $43,650 overdrawn

• $33,630 overdrawn

• $5,110 overdrawn

• $72,170 overdrawn

A bank reconciliation statement for Dallas at 30 June 20X5 is being prepared. The following information is available:

(1) Bank charges of $2,340 have not been entered in the cash book.

(2) The bank statement shows a balance of $200 Dr.

(3) Unpresented cheques amount to $1,250.

(4) A direct debit of $250 has not been recorded in the ledger accounts.

(5) A bank error has resulted in a cheque for $97 being debited to Dallas’ account instead of Dynasty’s account.

(6) Cheques received but not yet banked amounted to $890.

The final balance in the cash book after all necessary adjustments should be:

• $463 Dr

• $463 Cr

• $63 Cr

• $63 Dr

The following information relates to a bank reconciliation:

(1) The bank balance in the cash book before taking the items below into account was $8,970 overdrawn. (2) Bank charges of $550 on the bank statement have not been entered in the cash book. (3) The bank has credited the account in error with $425 which belongs to another customer. (4) Cheque payments totalling $3,275 have been entered in the cash book but have not been presented for payment. (5) Cheques totalling $5,380 have been correctly entered on the debit side of the cash book but have not been paid in at the bank.

What was the balance as shown by the bank statement before taking the items above into account?

• $8,970 overdrawn

• $11,200 overdrawn

• $12,050 overdrawn

• $17,750 overdrawn

Sharmin’s bank statement at 31 October 20X8 shows a balance of $13,400. She subsequently discovers that the bank has dishonoured a customer’s cheque for $300 and has charged bank charges of $50, neither of which is recorded in the cash book. There are unpresented cheques totalling $1,400 and an automatic receipt from a customer of $195 has been recorded as a credit in Sharmin’s cash book. Sharmin’s cash balance, prior to correcting the errors and omissions, was: A

• $11,455

• $11,960

• $12,000

• $12,155

Wimborne’s bank statement shows a balance of $715 overdrawn. The statement includes bank charges of $74 which have not been entered in the cash book. There are also unpresented cheques totalling $824 and lodgements not yet credited of $337. In addition the bank statement erroneously includes a dividend receipt of $25 belonging to another customer. The bank overdraft in the statement of financial position should be:

• $253

• $1,177

• $1,202

• $1,227

The cash book shows a bank balance of $5,675 overdrawn at 31 August 20X5. It is subsequently discovered that a standing order for $125 has been entered twice, and that a dishonoured cheque for $450 has been debited in the cash book instead of credited. The correct bank balance should be:

• $5,100 overdrawn

• $6,000 overdrawn

• $6,250 overdrawn

• $6,450 overdrawn

An organisation’s cash book had an opening balance of $485 credit.

During the following week, the following transactions took place:

Cash sales $1,450 including sales tax of $150.

Receipts from credit customers of $2,400.

Payments to suppliers of debts of $1,800 less 5% cash discount.

Dishonoured cheques from customers amounting to $250.

What was the resulting balance in the cash book after the transactions had been recorded?

• $1,255 debit

• $1,405 debit

• $1,905 credit

• $2,375 credit