Bank reconciliation statements (Part 2)

Amber updated her cash book after receiving her bank statement. The updated cash book balance was an overdraft of $250.

The bank statement did not include cheques not presented, $96, and amounts not credited,

$ 183.

What was the balance shown on the bank statement?

• $163 credit

• $163 debit

• $337 credit

• $337 debit

Which statement about a bank reconciliation statement is correct?

• It includes items recorded by the trader not yet recorded by the bank.

• It is a copy of the trader’s account as it appears in the books of the bank.

• It is sent by the bank to the trader at regular intervals.

• It summarises the bank columns in a trader’s cash book.

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

On 1 March 2020 the bank column of a cash book had a credit balance of $290.

During March cheques totalling $580 were received and cheques totalling $610 were paid to suppliers. Bank charges of $12 incurred in February were also entered in the cash book.

What was the balance of the bank column in the cash book on 1 April 2020?

• $248 credit

• $248 debit

• $332 credit

• $332 debit

Peter’s bank statement showed a debit balance of $ 600 on 1 April. The following transactions took place in April.

Total cheque deposits $7400

Total cheque payments $6200

Direct debit for insurance premium $180

Credit transfer from customer $450

What was the bank statement balance on 30 April?

• $870 credit

• $870 debit

• $2070 credit

• $2070 debit

• $650 credit

• $650 debit

• $1150 credit

• $1150 debit

On 31 July, the bank column in Jay’s cash book showed he had $312 in the bank. On the same date, his bank statement showed a debit balance of $53.

It was found that bank charges, $47, had not been recorded in the cash book and a cheque, $318, from a customer had not been credited by the bank.

What is the bank balance that should be shown in Jay’s statement of financial position on 31 July?

• $265 asset

• $324 liability

• $359 asset

• $371 liability

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

Reorder the following bank reconciliation statement starting with balance as per bank statement.

The following errors were discovered:

1. 1. Trader had brought down the cash book balance on 1 April 2018 incorrectly. It should have been $850.

2. 2. The bank had incorrectly entered a standing order for insurance in trader's business bank account instead of his personal bank account.

• Add uncredited amount

• Less unpresented cheques

• Add bank error (standing order)

• Balance as per bank statement

• Balance as per cash book

Organize these options into the right categories.

Entry required in cash book.

The following errors were discovered.
1. Trader had brought down the cash book balance on 1 April 2018 incorrectly as $950. It should have been $850.

2. 2. The bank had incorrectly entered a standing order for insurance ($100) in the trader's business bank account instead of her personal bank account.

Groups:

(a) Debit cash book ($)

,

(b) Credit cash book ($)

• Dividend receivable

• Cash book error ($100)

• Bank charges

• Bank interest receivable

• Rates (direct debit)

• Dishonoured cheque