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 bank error (standing order)

• Balance as per bank statement

• Less unpresented cheques

• Balance as per cash book

• Add uncredited amount

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 ($)

• Bank interest receivable

• Dishonoured cheque

• Dividend receivable

• Rates (direct debit)

• Bank charges

• Cash book error ($100)