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ACCOUNTING FOR CASH

Total questions: 16

Worksheet time: 16mins

Name
Class
Date
1.

A bank statement

a)

allows a depositor know the financial position of the bank as of a certain date.

b)

is a credit reference letter written by the depositor's bank.

c)

is a bill from the bank for services rendered.

d)

shows the activity which increased or decreased the depositor's account balance.

2.

A check returned by the bank marked "NSF" means

a)

not satisfactorily filled-out.

b)

non sufficient funds.

c)

no signature found.

d)

no service fee.

3.

A check returned by the bank marked "NSF" means

a)

not satisfactorily filled-out.

b)

not sufficient funds.

c)

no signature found.

d)

no service fee.

4.

In preparing its bank reconciliation for the month of April 2020, Leno, Inc. has available the following information.

Balance per bank statement, 4/30/20 RM76,800

NSF check returned with 4/30/20 bank statement 940

Deposits in transit, 4/30/20 9,000

Outstanding checks, 4/30/20 9,300

Bank service charges for April 60

What should be the adjusted cash balance at April 30, 2020?

a)

RM75,100.

b)

RM75,800.

c)

RM75,920.

d)

RM76,500.

5.

The cash account shows a balance of RM85,000 before reconciliation. The bank statement does not include a deposit of RM5,000 made on the last day of the month. The bank statement shows a collection by the bank of RM2,400 and a customer’s check for RM680 was returned because it was NSF. A customer’s check for RM900 was recorded on the books as RM1,080, and a check written for RM138 was recorded as RM183. The correct balance in the cash account was

a)

RM86,540.

b)

RM86,585.

c)

RM87,400.

d)

RM95,350.

6.

The cash account shows a balance of RM42,000 before reconciliation. The bank statement does not include a deposit of RM9,200 made on the last day of the month. The bank statement shows a collection by the bank of RM4,960 and a customer’s check for RM1,100 was returned because it was NSF. A customer’s check for RM1,380 was recorded on the books as RM1,830, and a check written for RM318 was recorded as RM381. The correct balance in the cash account was

a)

RM45,347.

b)

RM45,473.

c)

RM46,573.

d)

RM54,673

7.

If the month-end bank statement shows a balance of RM75,000, outstanding checks are RM54,000, a deposit of RM15,000 was in transit at month end, and a check for RM4,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

a)

RM36,000.

.

b)

RM40,000.

c)

RM75,000.

d)

RM118,000.

8.

In preparing its bank reconciliation for the month of April 2020, Sells, Inc. has available the following information.

Balance per bank statement, 4/30/20 RM40,290

NSF check returned with 4/30/20 bank statement 1,450

Deposits in transit, 4/30/20 10,200

Outstanding checks, 4/30/20 15,060

Bank service charges for April 60

What should be the adjusted cash balance at April 30, 2020?

a)

RM33,920.

b)

RM33,980.

c)

RM35,370.

d)

RM35,430.

9.

In preparing its August 31, 2020 bank reconciliation, Oakley Corp. has available the following information:

Balance per bank statement, 8/31/20 RM65,490

Deposit in transit, 8/31/20 10,170

Return of customer’s check not sufficient funds, 8/30/20 1,800

Outstanding checks, 8/31/20 5,820

Bank service charges for August 350

At August 31, 2020, Oakley’s adjusted cash balance is

a)

RM59,670.

b)

RM59,320.

c)

RM69,840.

d)

RM61,140.

10.

On a bank reconciliation, deposits in transit are

a)

added to the bank balance.

b)

deducted from the bank balance.

c)

added to the book balance.

d)

deducted from the book balance.

11.

A bank reconciliation should be prepared

a)

whenever the bank refuses to lend the company money.

b)

when an employee is suspected of fraud.

c)

To explain any difference between the depositor's balance per books and the balance per bank.

d)

by the person who is authorized to sign checks.

12.

A company had a receipt of RM474 and correctly prepared its bank deposit slip for RM474. However, the company recorded the receipt in its cash account as RM747. How is the difference handled on the bank reconciliation?

a)

Deducted from balance of cash book

b)

Added to balance of bank statement

c)

Deducted from balance of bank statement

d)

Added to balance of cash book

e)

No reconciliation needed

13.

The bank charged a company RM20 for check book service. Which reconciliation should be done?

a)

Deducted from balance of cash book

b)

Added to balance of bank statement

c)

Deducted from balance of bank statement

d)

Added to balance of cash book

e)

No reconciliation needed

14.

How to reconcile when an accountant of a company debited the amount of RM100 in cash book account, whereas in bank statement, the amount stated at the debit side too? (assumption; all information in bank is correct)

a)

Deducting RM100 from bank statement balance

b)

Deducting RM100 from cash book balance

c)

Deducting RM200 from bank statement balance

d)

Deducting RM200 from cash book balance

e)

No reconciliation needed

15.

Which is the correct reconciliation relating to deposit received by a company but yet not recorded in bank statement?

a)

Adding to bank statement balance

b)

Deducting to cash book balance

c)

Adding to bank statement balance

d)

Deducting to cash book balance

e)

No reconciliation needed

16.

How to record the adjustment entry for the Non Sufficient Fund stated in this bank reconciliation?

a)

Debit Non sufficient fund, credit bank

b)

Debit accounts receivable, credit bank

c)

Debit accounts payable, credit bank

d)

No adjustment entry needed