1) The cash book of Alex shows a credit balance of $1,850. Cheques of $73 have been written to suppliers but not yet cleared the bank; uncleared lodgments amount to $508. The bank has accidentally credited Worcester’s account with interest of $25 due to another customer. A standing order of $653 has not been accounted for in the general ledger.
What is the balance on the bank statement?
3) Are each of the following statements true or false?
A. An error by the bank must be corrected by an entry in the cashbook.
B. When preparing a bank reconciliation, unpresented cheques must be deducted from a balance of cash at bank shown in the bank statement.
C. An overdraft is a debit balance in the bank statement.
D. A cheque from a customer paid into the bank but dishonored must be corrected by making a debit entry in the cashbook.
4) Listed below are some possible causes of difference between the cash book balance and the bank statement balance when preparing a bank reconciliation.
A. Bank charges
B. Lodgments credited after date
C. Cheque paid in, subsequently dishonored
D. Cheques not yet presented
E. Error by bank
5) A bank reconciliation statement for Dogger at 30 September 20X9 is being prepared. The following information is available:
(1). Bank charges of $2,840 have not been entered in the cash book.
(2). The bank statement shows a balance of $350 Dr.
(3). Unpresented cheques amount to $1,600.
(4). A direct debit of $280 has not been recorded in the ledger accounts.
(5). A bank error has resulted in a cheque for $83 being debited to Dogger’s account instead of Rogger’s account.
(6). Cheques received but not yet banked amounted to $784.
What will be the final balance in the cash book after all necessary adjustments?
6) Which of the following statements about bank reconciliations are correct?
1. In preparing a bank reconciliation, lodgments recorded before date in the cash book but credited by the bank after date should reduce an overdrawn balance in the bank statement.
2. A difference between the cash book and the bank statement must be corrected by means of a journal entry.
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 dishonored after date, a credit entry in the cash book is required.
7) Shamzil’s bank statement at 31 March 20X9 shows a balance of $12,350. She subsequently discovers that the bank has dishonored a customer’s cheque for $400 and has charged bank charges of $80, neither of which is recorded in the cash book.
There are unpresented cheques totalling $2,750 and an automatic receipt from a customer of $115 has been recorded as a credit in Shamzil’s cash book.
What was Shamzil’s cash balance, prior to correcting the errors and omissions?
8) 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. An error by the bank in crediting to another customer's account a lodgement made by the company
2. Bank charges
C. Cheques recorded and sent to suppliers before 30 November 20X3 but not yet presented for payment
D. A cheque recorded and paid in before 30 November 20X3 but dishonored by the bank
E. Cheques paid in before 30 November 20X3 but not credited by the bank until 3 December 20X3
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?
9) Which of the following is not an ‘unrecorded difference’ when reconciling the balance on the cash book to the amount shown in the bank statement?
10) The following information relates to a bank reconciliation.
(i). The bank balance in the cashbook before taking the items below into account was $7,390 overdrawn.
(ii). Bank charges of $450 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 $3,860 have been entered in the cashbook but have not been presented for payment.
(v). Cheques totalling $6,110 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?