POBC - Bank Rec Quizzes - 02.12.24

CHAPS (Clearing House Payment System) impacts the business bank account immediately

• True

• False

Debit card payment impacts the business bank account immediately

• True

• False

Payment of large amount of sales collected at the bank is known as

• direct debits

• direct credits

• outstanding lodgements

• bank charges

• counter credit

Payment of gas and electricity is normally done by

• direct debits

• direct credits

• outstanding lodgements

• bank charges

• counter credit

The business has paid its suppliers by cheques but the payments do not appear on the bank statement. These are

• outstanding cheques

• direct credits

• outstanding lodgements

• bank charges

• unpresented cheques

All errors in the accounts can be identified by carrying out a bank reconciliation

• True

• False

Direct debits/standing orders, bank charges are all examples of timing differences

• True

• False

In a bank reconciliation, the cash book is always updated with transactions on the bank statement but not appearing on the cash book

• True

• False

Comparing the debit side of the cash book with the amounts paid in, on the bank statement, will reveal any missing uncredited lodgement

• True

• False

Answer explanation

The debit side of the cash book are the monies received by the business. These appear on the 'Payments in' column of the bank statement.

By comparing and ticking off the entries, we will be able to identify monies received by the business but not yet paid in to the bank - uncredited lodgements

A standing order for rent of £2,550 is showing on the bank statement. This is not in the cash book. £2,550 will need to be added in the bank reconciliation to make it agree with the cash book balance

• True

• False

Answer explanation

Standing order/direct debits, bank charges, bank interests are used to update the cash book. They already appear on the bank statement, but did not feature in the cash book.

So we update the cash book and not show in the bank reconciliation