Bank reconciliation seminar mcq answers PDF

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BAC4023 SEMINAR 9 ANSWERS – BANK RECONCILIATIONS Bank Reconciliations - answers

1. The cashbook shows a bank balance of $5,675 overdrawn at 31/08/18. It is subsequently discovered that a standing order for $125 has been entered twice, and that a dishonoured cheque from a customer for $450 has been debited in the cashbook instead of credited. The correct bank balance should be: A B C D

$5,100 overdrawn $6,000 overdrawn $6,250 overdrawn $6,450 overdrawn (-5675 + 125 – 450 - 450) = (6,450) CR

2. A business had a balance at the bank of $2,500 at the start of the month. During the following month, it paid for materials invoiced at $1,000 less trade discount of 20% and cash discount of 10%. It received a cheque from a customer in respect of an invoice for $200, subject to cash discount of 5%. The balance at the bank at the end of the month was: A B C D

$1,970 $1,980 $1,990 $2,000

(+2500 – 720 (1000 x 80% x 90%) + 190 (200 x 95%))

3. The following bank reconciliation statement has been prepared by a trainee accountant: BANK RECONCILIATION 30TH SEPT 2018 $ Balance as per bank statement (overdrawn) 36,840 Add: lodgements credited after date 51,240 88,080 Less: Outstanding cheques 43,620 Balance as per cashbook 44,460 Assuming the amounts stated for items other than the cashbook balance are correct, what should the cash book balance be? A B C D

$44,460 credit as stated $60,020 credit $29,220 debit $29,220 credit (-36840 + 51240 - 43620) = (29,220) CR

BAC4023 SEMINAR 9 ANSWERS – BANK RECONCILIATIONS 4. The following bank reconciliation statement has been prepared by a trainee accountant: BANK RECONCILIATION 30TH JUNE 2018 $ Overdraft as per bank statement 3,860 Less: Outstanding cheques 9,160 5,300 Add: deposits credited after date 16,690 Cash at bank, as calculated above 21,990 What should the correct balance per the cashbook? A B C D

$21,990 balance at bank as stated $3,670 balance at bank ( -3860 – 9160 + 16690) = 3,670 DR $11,390 balance at bank $3,670 overdrawn

5. The following bank reconciliation statement has been prepared by a trainee accountant: $ Overdraft per bank statement 5,660 Less: Outstanding cheques 8,990 3,330 Add: Deposits credited after date 19,670 Cash at bank as calculated above 23,000 What should be the correct balance per the cashbook? A B C D

$23,000 balance at bank as stated $5,020 balance at bank (-5660 – 8990 + 19670) = 5,020 DR $16,340 balance at bank $3,330 overdrawn

6. Your cashbook at 31/12/18 shows a bank balance of $565 overdrawn. On comparing this with your bank statement at the same date, you discover the following: 1. A cheque for $57 drawn by you on 29/12/18 has not yet been presented for payment (OUTSTANDING CHEQUE – BANK REC) 2. A cheque for $92 from a customer, which was paid into the bank on 24/12/18, has been dishonoured on 31/12/18. (DISHONOURED CHEQUE – ADJUSTED CASH BOOK)

Both these transactions need to be updated in the cashbook. The correct bank balance to be shown in the balance sheet at 31/12/18 is: A B C D

$714 overdrawn (-565 – 57 – 92) = (714) CR $657 overdrawn $473 overdrawn $53 overdrawn...