Bank Reconciliation 1

Jamal’s bank statement on 1 September 2022 showed a bank overdraft of $1460.

At that date there were unpresented cheques of $385 and uncredited deposits of $255.

What was the bank balance in the cash book on 1 September 2022?

• $1330 credit

• $1330 debit

• $1590 credit

• $1590 debit

The bank columns in a trader’s cash book and the bank statement both showed positive balances. A comparison revealed the following differences.

What was the difference between the balance shown in the bank column of the cash book and

that shown on the bank statement?

• The cash book balance was $190 higher than the bank statement balance.

• The cash book balance was $190 lower than the bank statement balance.

• The cash book balance was $210 higher than the bank statement balance.

• The cash book balance was $210 lower than the bank statement balance.

A standing order paid for rent has not been entered into the accounting records of a business.

Which statement is correct?

• Because the payment was made automatically, no additional entries are required in the

  accounting records.

• Because the payment was made automatically, only an entry in the rent account is required.

• Entries are required in the cash book and in the bank reconciliation statement.

• Entries are required in the cash book and in the nominal (general) ledger.

The bank statement of a business had a credit balance of $2690 on 1 October 2021. At that date

cheques totalling $850 had not yet been presented for payment.

What was the bank balance in the cash book on 1 October 2021?

• $1840 credit

• $1840 debit

• $3540 credit

• $3540 debit

Jack’s cash book showed an overdrawn balance at bank of $2600. Comparing the cash book with the bank statement, it was discovered that direct debits of $200 had not yet been recorded by Jack. He then updated his cash book.

What was the bank balance in Jack’s updated cash book?

• $2400 credit

• $2400 debit

• $2800 credit

• $2800 debit

On 31 December 2020, the bank column in Farad’s cash book showed an overdrawn balance of $2000. The following items had not been entered in the cash book.

What was the corrected balance of the bank column in the cash book at 1 January 2021?

• $650 credit

• $650 debit

• $1150 credit

• $1150 debit

Raj had a debit balance of $10 800 in the bank column of his cash book. He discovered that purchases, $890, paid by cheque, had been recorded as $980.

The following appeared in the bank statement but had not been entered in the cash book.

What was the debit balance in the bank column of Raj’s cash book after adjusting for these

items?

• $10 514

• $10 666

• $10 754

• $10 934

Which item would not be shown on a bank statement?

• a cheque returned by the bank marked as ‘refer to drawer’

• a monthly payment made for electricity by direct debit

• bank charges

• unpresented cheques

Jamal’s bank statement at 1 May 2021 showed a bank overdraft of $1460.

At that date there were unpresented cheques of $385 and uncredited deposits of $255.

What was the cash book balance on 1 May 2021?

• $1330 credit

• $1330 debit

• $1590 credit

• $1590 debit