Bank Reconciliations (Y7C13)

1	Your cash book at 31 December 20X3 shows a bank balance of $565 overdrawn. On comparing this with your bank statement at the same date, you discover the following.
	1	A cheque for $57 drawn by you on 29 December 20X3 has not yet been presented for payment.
	2	A cheque for $92 from a customer, which was paid into the bank on 24 December 20X3, has been dishonoured on 31 December 20X3.
	What is the correct bank balance to be shown in the statement of financial position at 31 December 20X3?
	A	$714 overdrawn
	B	$657 overdrawn
	C	$473 overdrawn
	D	$53 overdrawn
2	The cash book shows a bank balance of $5,675 overdrawn at 31 August 20X5. 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. What is the correct bank balance?
	A	$5,100 overdrawn
	B	$6,000 overdrawn
	C	$6,250 overdrawn
	D	$6,450 overdrawn
3	A business had a balance at the bank of $2,500 at the start of the month. During the following month, it paid for materials invoiced at $1,000 less trade discount of 20% and cash discount of 10%. It received a cheque from a customer in respect of an invoice for $200, subject to cash discount of 5%. What was the balance at the bank at the end of the month?
	A	$1,970
	B	$1,980
	C	$1,990
	D	$2,000
4	The bank statement on 31 October 20X7 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by your company for $80 had not been presented for payment, and that a cheque for $130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7?
	A	$1,010 overdrawn
	B	$880 overdrawn
	C	$750 overdrawn
	D	$720 overdrawn
5	The following information relates to a bank reconciliation.
	(i)	The bank balance in the cashbook before taking the items below into account was $8,970 overdrawn.
	(ii)	Bank charges of $550 on the bank statement have not been entered in the cashbook.
	(iii)	The bank has credited the account in error with $425 which belongs to another customer.
	(iv)	Cheque payments totalling $3,275 have been entered in the cashbook but have not been presented for payment.
	(v)	Cheques totalling $5,380 have been correctly entered on the debit side of the cashbook but have not been paid in at the bank.
	What was the balance as shown by the bank statement before taking the above items into account?
	A	$9,520 overdrawn
	B	$11,200 overdrawn
	C	$9,520 in credit
	D	$11,200 in credit
6	The following bank reconciliation statement has been prepared by a trainee accountant:
	BANK RECONCILIATION 30 SEPTEMBER 20X2
	Balance per bank statement (overdrawn) Ass: lodgements credited after date		$ 36,840 51,240
	Less: unpresented cheques		88,080 43,620
	Balance per cash book (credit)		44,460
	Assuming the amounts stated for items other than the cash book balance are correct, what should the cash book balance be?
	A	$44,460 credit as stated
	B	$60,020 credit
	C	$29,220 debit
	D	$29,220 credit
7	Listed below are some possible causes of difference between the cash book balance and the bank statement balance when preparing a bank reconciliation:
	1	Cheque paid in, subsequently dishonoured
	2	Error by bank
	3	Bank charges
	4	Lodgements credited after date
	5	Unpresented cheques not yet presented
	Which of these items require an entry in the cash book?
	A	1 and 3 only
	B	1, 2, 3, 4 and 5
	C	2, 4 and 5 only
	D	4 and 5 only
8	In preparing a company's bank reconciliation statement at March 20X3, the following items are causing the difference between the cash book balance and the bank statement balance:
	1	Bank charges $380
	2	Error by bank $1,000 (cheque incorrectly debited to the account)
	3	Lodgements not credited $4,580
	4	Unpresented cheques $1,475
	5	Direct debit $350
	6	Cheque paid in by the company and dishonoured $400
	Which of these items will require an entry in the cash book?
	A	2, 4 and 6
	B	1, 5 and 6
	C	3 and 4
	D	3 and 5
9	The following bank reconciliation statement has been prepared by a trainee accountant:
	Overdraft per bank statement Less: unpresented cheques				$ 3,860 9,160
	Add: deposits credited after date				5,300 16,690
	Cash at bank as calculated above				21,990
	What should be the correct balance per the cash book?
	A	$21,990 balance at bank as stated
	B	$3,670 balance at bank
	C	$11,390 balance at bank
	D	$3,670 overdrawn
10	Which of the following statements about bank reconciliations are correct?
	1	A difference between the cash book and the bank statement must be corrected by means of a journal entry.
	2	In preparing a bank reconciliation, lodgements recorded before date in the cash book but credited by the bank after date should reduce an overdrawn balance in the bank statement.
	3	Bank charges not yet entered in the cash book should be dealt with by an adjustment in the bank reconciliation statement.
	4	If a cheque received from a customer is dishonoured after date, a credit entry in the cash book is required.
	A	2 and 4
	B	1 and 4
	C	2 and 3
	D	1 and 3
11	The following information relates to a bank reconciliation.
	(i)	The bank balance in the cashbook before taking the items below into account was $8,970 overdrawn.
	(ii)	Bank charges of $550 on the bank statement have not been entered in the cashbook.
	(iii)	The bank has credited the account in error with $425 which belongs to another customer.
	(iv)	Cheque payments totalling $3,275 have been entered in the cashbook but have not been presented for payment.
	(v)	Cheques totalling $5,380 have been correctly entered on the debit side of the cashbook but have not been paid in at the bank.
	What was the balance as shown by the bank statement before taking the items above into account?
	A	$8,970 overdrawn
	B	$11,200 overdrawn
	C	$12,050 overdrawn
	D	$17,750 overdrawn
12	The following attempt at a bank reconciliation statement has been prepared by Q Co:
	Overdraft per bank statement Add: deposit not credited					$ 38,600 41,200
	Less: unpresented cheques					79,800 3,300
	Overdraft per cash book					76,500
	Assuming the bank statement balance of $38,600 to be correct, what should the cash book balance be?
	A	$76,500 overdrawn, as stated
	B	$5,900 overdrawn
	C	$700 overdrawn
	D	$5,900 cash at bank
13	After checking a business cash book against the bank statement, which of the following items could require an entry in the cash book?
	1	Bank charges
	2	A cheque from a customer which was dishonoured
	3	Cheque not presented
	4	Deposits not credited
	5	Credit transfer entered in bank statement
	6	Standing order entered in bank statement.
	A	1, 2, 5 and 6
	B	3 and 4
	C	1, 3, 4 and 6
	D	3, 4, 5 and 6
14	The following bank reconciliation statement has been prepared for a company:
	Overdraft per bank statement Add: Deposits credited after date						$ 39,800 64,100
	Less: Unpresented cheques presented after date						103,900 44,200
	Overdraft per cash book						59,700
	Assuming the amount of the overdraft per the bank statement of $39,800 is correct, what should be the balance in the cash book?
	A	$158,100 overdrawn
	B	$19,900 overdrawn
	C	$68,500 overdrawn
	D	$59,700 overdrawn
15	Listed below are five potential causes of difference between a company's cash book balance and its bank statement balance as at 30 November 20X3:
	1	Cheques recorded and sent to suppliers before 30 November 20X3 but not yet presented for payment
	2	An error by the bank in crediting to another customer's account a lodgement made by the company
	3	Bank charges
	4	Cheques paid in before 30 November 20X3 but not credited by the bank until 3 December 20X3
	5	A cheque recorded and paid in before 30 November 20X3 but dishonoured by the bank
	Which one of the following alternatives correctly analyses these items into those requiring an entry in the cash book and those that would feature in the bank reconciliation?
		Cash book entry		Bank reconciliation
	A	1, 2, 4		3, 5
	B	3, 5		1, 2, 4
	C	3, 4		1, 2, 5
	D	2, 3, 5		1, 4