True Or False Accounting Test Question(With Answer) On Bank Reconciliation Statement

slang — Fri, 11 Sep 2009 03:40:42 +0000

Append below some questions to test the knowledge of those who have just studied topic on bank reconciliation statement:

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Questions with Answers on Bank Reconciliation Statement

slang — Thu, 10 Sep 2009 08:02:26 +0000

QUESTION NO.1: In early August 06, Company A received a bank statement which showed a balance of $55,262 as at 31 th July ’06. However, its own record showed a balance of $55,597 on the same date.

The following differences are identified:

(i) Deposits amounted to $1,300 was not in the bank statement;

(ii) Two checks were sent to suppliers, but yet to be accounted for by the bank. The checks details were as follows:

Check no:6661 dated July 20 $380
Check no:6662 dated July 27 $670

(iii) The bank imposed a service charge of $55

(iv) A check no 6666 issued on July 24 for water bill amounting to $3,350 was wrongly entered in the cash payment journal as $3,530. The amount was correctly shown as $3,350 in the bank statement.

(v) A check amounting to $210 was received from customer ABC on July 15 and deposited a day after. However, due to insufficient fund in Mr.ABC’s account, the bank informed the Company A that the dishonored check had been debited to Company A.

Question: Show the Bank Reconciliation Statement for Company A.

Answer to Question No 1:

Company A

Bank Reconciliation as at 31 st July 2006 $

Balance as per bank statement at 31st July 2006 55,262

Add: Deposits in transit / Uncredited deposits 1,300

56,562

Deduct:

Unpresented cheques

Check No

6661 dated July 20th $380

6662 dated July 27th $670 1,050

Adjusted Bank balance at 31st July 2006 55,512

Balance as per Bank account at 31 st July 2006 55,597

Add: Check no 6666 (Overstated amount) 180__

55,777

Deduct:

Bank service charge $55

Dishonored check $210 265

Adjusted Cash balance at 31 st July 2006 55,512

QUESTION NO.2:-Company XYZ received a bank statement for the month of August 2006. The bank statement showed the following information:

Balance, August 1, 2006 $68,326

Deposits 45,300

Checks processed (36,222)

Service charges (50)

Monthly deposit into saving account directly

Deducted by bank from account (680)

Balance, August 31 st , 2006 $76,674

Company XYZ’s general ledger account had a balance of $78,304 at the end of August 2006.

(i) Deposits outstanding amounting to $8,200;

(ii) all checks written by the company were processed by the bank except for those totaling $8,420;

(iii) A $2,000 check to a supplier correctly recorded by the bank but was incorrectly recorded by the company as $200 credit to cash.

Required:

Prepare a bank reconciliation statement for the month of August’06
Prepare the necessary journal entries at the end of August to adjust the general ledger cash account.

Answer to Question No 2:

Part 1 : Preparation of Bank Reconciliation Statement:

Company XYZ

Bank Statement As At 31 st August 2006 $

Step 1: Bank Balance to Corrected Balance

Balance per Bank Statement $74,674

Add: Deposits Outstanding 8,200

Deduct: Checks Outstanding (8,420)

$74,454

Step 2: Book Balance to Corrected Balance

Balance per books $78,304

Service charges (50)

Automatic monthly transfer (2,000)

Error in recording cash disbursement ($2,000-200) (1,800)

Corrected Cash Balance $74,454

Part 2: To record credits to cash revealed by the bank reconciliation.

Miscellaneous charges ( bank service charges) $50

Cash-savings account $2,000

Accounts payable $1,800

Cash $3,850

[PS: Each adjustment affecting the book balance required journal entries

None of the adjustments to the bank balance require entries. ]

Accounting Test Question No 2 on Bank Reconciliation

slang — Sun, 21 Oct 2007 04:46:00 +0000

The Cash Book Of Jim Co. showed a Bank Overdraft at 31 Jan 2007 of $1,800

When you checked the Bank Statement as at that date with the Cash Book , you discovered the following:

(a) the following items appearing in the Cash Book do not appear in the Bank Statement:-

Jan

16 Cheque No 123 John $350

18 Cheque No 145 Tim $185

23 Cheque No 156 Sean $215

31 Lodgement at bank $400

(b) the following items appear in the Bank Statement but NOT ENTERED in the Cash Book:-

Jan

15 Raymond’s cheque dishonoured $120

24 Interest on overdraft $10

25 Cheque book charge $20

26 Dividends collected $110

27 Credit transfer – Ronald $810

31 Roy’s cheque dishonored $45

Question:

You are required to:-

( i) make the necessary entries in the Cash Book and bring down the adjusted balance

(ii) prepare a Bank Reconciliation Statement to show the balance as per Bank Statement.

[Answer: ADJUSTD CASH BOOK BALANCE-$1,075 OVERDRAFT & BALANCE AS PER BANK STATEMENT $725 OVERDRAFT]

Accounting Test Question No 1 on Bank Reconciliation

slang — Sun, 21 Oct 2007 04:33:18 +0000

On 30 April 2007, the Cash Book Of Jim showed a balance at bank amount to $812

You found that:

(a) a cheque for $360 received by Jim and entered in his Cash Book on 30 April 2007 was not credIted by the bank until 3 May 2007

(b) Cheques issued by Jim on 27 April amounting to $289 were not paid by the bank until 2 May 2007

(c)On 30 April, the bank debited Jim’s account with $15 bank charges. No entry has been made in Jim’s Cash Book

(d) A customer settled his debt by credit transfer. The amount $394 was credited by the bank to Jim’s account on 20 April . but not entry has been made in Jim’s Cash Book.

Question:

Prepare:

( i) the adjusted Cash Book showing the balance in Jim’s account at 30 April 2007

(ii) a reconciliation of the balance shown by the Bank Statement with the adjusted Cash Book balance as at 30 Apri 2007

[ANSWER: ADJUSTED CASH BOOK BALANCE-$1,191 AND BANK STATEMENT BALANCE-$1,120]

Basic Online Bookkeeping & Accounting Guide » Bank Reconciliation Statement

True Or False Accounting Test Question(With Answer) On Bank Reconciliation Statement

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Accounting Test Question No 2 on Bank Reconciliation

Accounting Test Question No 1 on Bank Reconciliation