Notesale: Turn your study into money

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M
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Accounting/Finance/Business
By: M
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K

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QUESTIONS
1

At 31 December 1997, a customer’s bank statement shows that his bank account is overdrawn by $10 136
...
His bank statement
shows that interest of $181 has been charged, but this has not yet been entered in the cash book
...

$
Cash book balance in hand at 31 December
Balance as per bank statement at 31 December
Bank charges per bank statement not entered in cash book
Outstanding cheques not presented at the year-end
What is the bank balance to be shown in the financial statements?
A
$1 600
B
$1 925
C
$2 075

2 075
2 250
150
325
D

$2 225

3

In the cash book of a company the bank account showed a credit balance of $5 000
...
The bank statement showed bank charges of $700 not in the
cash book
...
However, a cheque for $14 470 received
from Y and a cheque for $1 740 paid to Z appears in the cash book but not on the bank statement
...

What is the balance shown on the bank statement at 30 April?
A
$4 770 credit
B
$4 770 debit
C
$20 690 credit D
$20 690 debit

5

A bank reconciliation statement shows a credit balance of $400 in the Cash Book and a balance in hand of
$100 in the bank statement
...

What is the total of cheques banked and not yet credited?
A
$200
B
$400
C
$1 000
D
$1 200

6

When preparing a bank reconciliation statement the following information is available
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K

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7

The table shows details relating to a company’s banking transactions at 31 December
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The following information is now available
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Comparison with the cash book reveals:
 Cheques totalling $18 725, sent to suppliers, have not been presented
...

 Bank charges of $124 have not been entered in the cash book
...
There are cheques written
but not yet cleared by the bank amounting to $140
...

How would the balance in the cash book be shown in the balance sheet?
$
A current asset
170
B current asset
330
C current liability
170
330
D current liability

11

At the year-end a cash book shows a credit balance of $4800
...

Cheque payments entered in the cash book before the year end to the value of $250 had not yet cleared
the bank
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K

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12

The cash book of a business shows a credit balance of $12 500 at 30 June
...

A cheque for $20 000 received from a debtor, and a cheque for $3000 paid to a creditor have been entered
in the cash book, but have not yet been shown on the bank statement
...
What is the balance on the bank statement?
A
$150 in hand
B
$150 overdraft
C
$400 in hand
D
$400 overdraft

14

At the financial year end of a business the following information is available
...

Unpresented cheques
Uncredited bankings

$
3 190
1 949

The cash book has a debit balance of $5 000
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K

5
17

A bank reconciliation statement has been prepared by an inexperienced book-keeper
...
This was different from the balance on the bank
statement
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$
bank charges
216
a customer’s cheque which was dishonoured
1 375
a bank error meant a cheque was incorrectly debited to the bank account
560
What should be the value of bank in the statement of financial position?
A
$21 629
B
$22 189
C
$25 371
D
$25 931

M
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This figure can be
calculated through bank reconciliation statement as follows
Bank Reconciliation Statement
$
Overdraft balance as per adjusted cash book (balancing figure)
Add

Uncreditedcheques

Less
Unpresented cheques
Overdraft balance as per bank statement

9 238
5 896
15 124
(4 998)
10 136

* Interest is not accounted for, as this has already been recorded in the bank statement
...
This figure can be
calculated through bank reconciliation statement as follows
Bank Reconciliation Statement
Balance as per adjusted cash book [balancing figure)
Add
Unpresented cheques
Balance as per bank statement

$
1 925
325
2 250

Alternatively
Balance as per original cashbook
Less
Bank charges accounted for
Balance as per adjusted cash book

$
2 075
(150)
1 925

Bank Reconciliation Statement
$
Bank overdraft as per cash book ($5 000 + $700)
Less
Unpresented cheques
Bank balance as per bank statement (Dr)

5 700
(1 500)
4200

Bank Reconciliation Statement
$
Balance as per adjusted cash book (Dr) ($12 460 – $4 500)
Add
Unpresented cheques
Less
Uncreditedcheques
Balance as per bank statement (Dr)

7 960
1 740
(14 470)
4 770

Bank Reconciliation Statement
$
Balance as per cash book (Cr)
Add
Uncreditedcheques (balancing figure)
Less
Unpresented cheques
Balance as per bank statement (Cr)

400
200
(700
100

M
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Balance c/d

Adjusted Cash Book
$
14 500 Balance b/f
Bank charges
14 500

$
12 500
2 000
14 500

Bank Reconciliation Statement

$

Balance as per adjusted Cash book (Cr)
Add
Uncleared deposits

14 500
20 000
3
4
5
0
0
(3 000)
31 500

Less
Unpresented cheques
Balance as per bank statement (Dr)
13

Bank Reconciliation Statement
$
Overdraft balance as per cash book (Cr)
Add
Amounts banked but not credited
Less
Cheques drawn but not presented
Balance as per bank statement (Cr)

14

2 600
250
(3 000)
150

Bank Reconciliation Statement
$
Balance as per bank statement
Add
Unpresented cheques

1 000
300
1 300
(600)
550

Less
lodgements not yet credited by the bank
Balance as per adjusted cash book (Credit)
Adjusted Cash Book
$
700

Balance c/d (Bank reconciliation)

$
550
150
700

Balance b/f (balancing figure)
Bank charges and interest

700
16
cash withdrawn from bank for business use
cash banked
Net change
Bank Reconciliation Statement
$
Overdraft balance as per bank statement (Dr)
Add
cheques paid to suppliers, not yet presented (Un-presented Cheques)
Less
cheques received not paid in (Un-credited cheques)
Balance as per adjusted cash book (Dr)

Cash
200
120
80

Bank
200
120
80

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Adjusted Cash Book
$
23 780 Bank charges
Customer A/c (dishonoured cheque)
Balance c/d
23 780

Balance b/f

So “B” option is correct

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