What information appears on a bank statement?
Paragraph 2
What are outstanding lodgements?
3.2
What are unpresented cheques?
3.2
What is the general format of a bank reconciliation statement?
3.2
What is the objective of performing a supplier statement reconciliation?
5.1
FA1: RECORDING FINANCIAL TRANSACTIONS
4 ABC Co's accounting records show that its cash at bank general ledger account is overdrawn by $1,000. The balance on the bank statement only $500 overdrawn.
Assuming there are no errors on the bank statement, what could account for the difference?
A Bank charges of $500 charged by the bank
B A decrease in bank overdraft of $500
C Unpresented cheques posted to suppliers totalling $500
D $500 paid into the bank has yet to be included in the bank statement
5 Which one of the following does not appear on a supplier statement?
A Balance b/f
B Balance c/f
C Payments/Bank
D Trade discount
For suggested answers, see the 'Answers' section at the end of the book.
RECONCILIATIONS
|CHAPTER 13
1 The bank reconciliation statement of High Co shows outstanding lodgements of $2,300 and outstanding cheques to suppliers of $2,000. High Co's cash at bank general ledger account shows a debit balance at $12,500.
What was the bank balance on the bank statement of High Co at 31 May?
A $12.200
B $12,500
C $12,800
D $16,800
(i)
2 After checking a business cash at bank general ledger account against the bank statement, which of the following items could require an entry in the general ledger?
(i) Bank charges
(ii) A cheque from a customer, which was dishonoured
(iii) A cheque not presented
(iv) A deposits not credited
(v) Credit transfer entered in bank statement
(vi) Standing order entered in bank statement
A (i), (ii), (v) and (vi)
B (iii) and (iv)
C (i), (iii), (iv) and (vi)
D (iii), (iv), (v) and (vi)
3 The balance on the cash at bank general ledger account of Mane at 31 May was a debit of $269.36. It was then discovered on receipt of the bank statement that a standing order for $40 had been omitted from the cash at bank general ledger account and that bank interest on a deposit account of $15.20 had been credited to the business account.
What is the correct balance on Mane's cash at bank general ledger account at 31 May?
A $324.56
B $294.16
C $244.56
D $214.16