Accounting Chapter 14 - Past Year MCQ

Raj had a debit balance of $10 800 in the bank column of his cash book. He discovered that purchases, $890, paid by cheque, had been recorded as $980. The following appeared in the bank statement but had not been entered in the cash book. bank charges 76 interest received 120 What was the debit balance in the bank column of Raj’s cash book after adjusting for these items?

• $10 514
• $10 666
• $10 754
• $10 934

Jack’s cash book showed an overdrawn balance at bank of $2600. Comparing the cash book with the bank statement, it was discovered that direct debits of $200 had not yet been recorded by Jack. He then updated his cash book. What was the bank balance in Jack’s updated cash book?

• $2400 credit
• $2400 debit
• $2800 credit
• $2800 debit

What is a cheque counterfoil used for?

• to make a credit entry in the bank column of a cash book
• to make a debit entry in the bank column of a cash book
• to send a payment to a supplier
• to send proof of payment to a customer

A standing order paid for rent has not been entered into the accounting records of a business. Which statement is correct?

• Because the payment was made automatically, no additional entries are required in the accounting records.
• Because the payment was made automatically, only an entry in the rent account is required.
• Entries are required in the cash book and in the bank reconciliation statement.
• Entries are required in the cash book and in the nominal (general) ledger.

The bank statement of a business had a credit balance of $2690 on 1 October 2021. At that date cheques totalling $850 had not yet been presented for payment. What was the bank balance in the cash book on 1 October 2021?

• $1840 credit
• $1840 debit
• $3540 credit
• $3540 debit

Jamal’s bank statement at 1 May 2021 showed a bank overdraft of $1460. At that date there were unpresented cheques of $385 and uncredited deposits of $255. What was the cash book balance on 1 May 2021?

• $1330 credit
• $1330 debit
• $1590 credit
• $1590 debit

On 31 December 2020, the bank column in Farad’s cash book showed an overdrawn balance of $2000. The following items had not been entered in the cash book. standing order for rent 200 interest on bank overdraft 50 credit transfer from X Limited 2900 What was the corrected balance of the bank column in the cash book at 1 January 2021?

• $650 credit
• $650 debit
• $1150 credit
• $1150 debit

A trader’s bank statement showed a credit balance of $2940. The following items had not been entered in the cash book. bank interest received 70 credit transfer 280 What was the debit balance in the cash book before it was updated?

• $2590
• $2730
• $3150
• $3290

What would result in a cash book balance being lower than the balance showing on a bank statement?

• A cheque received from a customer was not recorded in the bank statement.
• A customer’s cheque dishonoured by the bank appeared only on the bank statement.
• Payment by a customer directly into the bank was not recorded in the cash book.
• Payment of insurance by standing order was not recorded in the cash book.

On 31 January, Somraj’s bank statement showed a credit balance of $740. Comparing the bank statement with the cash book he found the following. bank charges not recorded in the cash book 30 cheque paid but not presented to the bank 150 Somraj updated his cash book as required. What was the updated cash book balance on 31 January?

• $590
• $620
• $860
• $890