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Exam 19: The Bank Reconciliation Statement

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Question 1

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The balance per the bank statement is £56,859 on the 31st December 20X1. Per the cash book, £30,000 was transferred to the deposit account on the 31st December 20X1 (the bank had been telephoned and asked to action this) and a cheque for £500 had been issued to H. White a supplier. However, both transactions had not appeared on the bank statement. In addition, interest received of £1,800 was on the bank statement but had not been posted to the cash book. The balance per the statement of financial position is:

A) £56,359
B) £58,159
C) £28,159
D) £26,359

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Question 2

Multiple Choice

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The cash book on 31st December 20X0 has a balance of £3,800. The bank statement on the same date has a balance of £4,000. The difference is most likely as a result of the following:

A) Cheques for £200 recorded in the cash book, not yet cleared in the bank
B) Direct debits of £200 included in the bank statement, not yet in the cash book
C) Receipts of £200 recorded in the cash book, not yet cleared in the bank
D) Bank charges of £200 included in the bank statement, not yet in the cash book

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Question 3

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A lodgement that is recorded in the cash book but is not in the bank statement is called:

The cash book shows a bank balance of £2,675 overdrawn at 30 September 20X1. It is discovered that a dishonoured cheque for £450 has been debited to the cash book instead of credited and a standing order for £125 has been entered twice. The correct bank balance should be:

A lodgement that is recorded in the bank statement on both the debit side and subsequently on the credit side is likely to be:

When a bank statement has a negative balance the cash book balance will be as follows:

The cash book shows a bank balance of £1,675 overdrawn at 31 December 20X1: 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 is:

ABC's cash book on 31 January 20X1 shows a bank balance of £1,695 overdrawn. When the transactions in the cash book were compared to those in the bank statement the following was noticed: A cheque for £276 from a customer, which was paid into the bank on 28th January 20X1, has been dishonoured on 30th January 20X1. A cheque written by ABC for £171 on 29th January 20X1 has not yet been presented for payment. The balance on the bank statement is:

If a bank reconciliations statement starts with the balance per the bank statement in overdraft, then, in the reconciliation statement any outstanding cheques should be?

A business commenced with a bank balance of £6,500; it subsequently purchased goods by cheque for £20,000; gross profit mark-up was 120%; half the goods were sold for cash, less cash discount of 5%; all takings were banked. The resulting bank balance is:

ABC's cash book on 31 January 20X1 shows a bank balance of £1,695 overdrawn. When the transactions in the cash book were compared to those in the bank statement the following was noticed: A cheque for £276 from a customer, which was paid into the bank on 28th January 20X1, has been dishonoured on 30th January 20X1. A cheque written by ABC for £171 on 29th January 20X1 has not yet been presented for payment. The correct bank balance to be shown in the statement of financial position at 31st January 20X1 is:

The cash book has a balance of £800 overdrawn. Cheques for £5,000 have been issued, but do not yet appear on the bank statement. Receipts of £3,000 are in the cash book, are lodged, but are not yet cleared in the bank hence are not on the bank statement. What is the balance on the bank statement?

Which of the following would require an adjustment to the company's cash book balance on receipt of the monthly banks statement?

The following information relates to a bank reconciliation The bank balance in the cash book before taking items (2) to (5) was £17,940 overdrawn. The bank has credited the account in error with £850 which belongs to another customer. Bank charges of £1,100 on the bank statement have not been entered in the cashbook. Cheques totalling, £10,760 have been correctly entered on the debit side of the cash book but have not been paid in the bank. Cheque payments totalling £6,550 have been entered in the cash book but have not been presented for payment. What was the balance as shown by the bank statement before taking the items above the account?

The balance per the bank statement is £56,859 on the 31st December 20X1. Per the cash book, £30,000 was transferred to the deposit account on the 31st December 20X1 (the bank had been telephoned and asked to action this) and a cheque for £500 had been issued to H. White a supplier. However, both transactions had not appeared on the bank statement. In addition, interest received of £1,800 was on the bank statement but had not been posted to the cash book. The £30,000 transfer is an example of:

Your firm's cash book at 30 April 20X0 shows a balance at the bank of £1,245. Comparison with the bank statement at the same date reveals the following differences: Unpresented cheques 420 Bank charges not in cash book 25 Receipts not yet credited by the bank 235 Dishonoured cheque not in cash book 70 The correct adjusted cash book balance at 30 April 20X0 is

Which of the following is not a valid reason for the cash book and bank statement to disagree?