MCQ - Bank Reconciliation

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A trader compared his cash book (bank column), which had a debit balance of $70, with his bank statement. He found that bank charges, $10, had not been recorded in his books, and that a cheque for $18 which he had issued had not been presented.

What was the balance on his bank statement?

1 point

$62 credit

$62 debit

$78 credit

$78 debit

A trader’s bank statement showed a credit balance of $2940. The following items had not been entered in the cash book.

What was the debit balance in the cash book before it was updated?

1 point

$2590

$2730

$3150

$3290

Amber updated her cash book after receiving her bank statement. The updated cash book balance was an overdraft of $250. The bank statement did not include cheques not presented, $96, and amounts not credited, $183.

What was the balance shown on the bank statement?

1 point

$163 credit

$163 debit

$337 credit

$337 debit

Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the bank.

How should Farouk record this?

1 point

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?

1 point

$1330 credit

$1330 debit

$1590 credit

$1590 debit

On 1 March 2020 the bank column of a cash book had a credit balance of $290. During March cheques totalling $580 were received and cheques totalling $610 were paid to suppliers. Bank charges of $12 incurred in February were also entered in the cash book.

What was the balance of the bank column in the cash book on 1 April 2020?

1 point

$248 credit

$248 debit

$332 credit

$332 debit

On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was returned unpaid by the bank.

What entry would Nina make on 12 April?

1 point

On 31 January, Somraj’s bank statement showed a credit balance of $740. Comparing the bank statement with the cash book he found the following.

1 point

$590

$620

$860

$890

Peter’s bank statement showed a debit balance of $600 on 1 April. The following transactions took place in April.

What was the bank statement balance on 30 April?

1 point

$870 credit

$870 debit

$2070 credit

$2070 debit

Peter’s bank statement showed a debit balance of $600 on 1 April. The following transactions took place in April.

What was the bank statement balance on 30 April?

1 point

$870 credit

$870 debit

$2070 credit

$2070 debit

The bank columns in a trader’s cash book and the bank statement both showed positive balances. A comparison revealed the following differences. $ uncredited cheque 200 bank charges not included in cash book 10 What was the difference between the balance shown in the bank column of the cash book and that shown on the bank statement? *

1 point

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.

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?

1 point

$1840 credit

$1840 debit

$3540 credit

$3540 debit

What would result in a cash book balance being lower than the balance showing on a bank statement? *

1 point

A cheque received from a customer was not recorded in the bank statement.

A customer’s cheque dishonoured by the bank appeared only on the bank statement.

Payment by a customer directly into the bank was not recorded in the cash book

Payment of insurance by standing order was not recorded in the cash book.

When Jack prepared his bank reconciliation statement it included an unpresented cheque.

Which cheque is unpresented?

1 point

a cheque Jack received and banked but which has not appeared on his bank statement

a cheque which appears on Jack’s bank statement but which has been omitted from his cash book

a cheque which Jack has issued to a supplier who has not banked it

a cheque debited twice in Jack’s bank statement in an error by the bank

Which account or statement provides a summary of transactions involving trade receivables? *

1 point

bank reconciliation statement

provision for doubtful debts account

sales ledger control account

statement of financial position

Which business document is used to update the cash book for standing order payments? *

1 point

bank statement

cheque counterfoil

paying-in slip

receipt

Which item would not be shown on a bank statement? *

1 point

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

a monthly payment made for electricity by direct debit

bank charges

unpresented cheques

Which statement about a bank reconciliation statement is correct? *

1 point

It includes items recorded by the trader not yet recorded by the bank.

It is a copy of the trader’s account as it appears in the books of the bank.

It is sent by the bank to the trader at regular intervals.

It summarises the bank columns in a trader’s cash book.

Why does a trader compare his cash book with his bank statement *

1 point

Zara provided the following information for the year ended 31 December 2018. *

1 point

$11400

$12900

$15700

$17200

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