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The cashbook shows a bank balance of $5,675 overdrawn at 31 August 2005. It is subsequently discovered that a standing order for $125 has been entered twice, and that a dishonored for $450 has been debited in the cashbook instead of credited. The correct bank balance is $6,450 overdrawn. The bank statement on 31 October 2007 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by a company for $80 had not been presented for payment and that a cheque for $130 form a customer had been dishonored on 30 October 2007. The correct bank balance is $720 overdrawn. The cash book

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182 views3 pages

9.2 BRS Home

The cashbook shows a bank balance of $5,675 overdrawn at 31 August 2005. It is subsequently discovered that a standing order for $125 has been entered twice, and that a dishonored for $450 has been debited in the cashbook instead of credited. The correct bank balance is $6,450 overdrawn. The bank statement on 31 October 2007 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by a company for $80 had not been presented for payment and that a cheque for $130 form a customer had been dishonored on 30 October 2007. The correct bank balance is $720 overdrawn. The cash book

Uploaded by

aneesgillani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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c 


     
 

 The cashbook shows a bank balance of $5,675 overdrawn at 31 August 2005. It is subsequently
discovered that a standing order for $125 has been entered twice, and that a dishonored for
$450 has been debited in the cashbook instead of credited.
c 
  
A $5,100 overdrawn
B $6,000 overdrawn
C $6,250 overdrawn
D $6,450 overdrawn

 The bank statement on 31 October 2007 showed an overdraft of $800. On reconciling the bank
statement, it was discovered that a cheque drawn by a company for $80 had not been
presented for payment and that a cheque for $130 form a customer had been dishonored on 30
October 2007.
c 
  
  
 
 

A $1,010 overdrawn
B $880 overdrawn
C $750 overdrawn
D $720 overdrawn



The cash book of Pink Ltd shows a balance of $1,000 credit while the bank statement on the
same date shows balance $700 credit

  
   
A Outstanding lodgment of $300
B Un-presented cheques of $300
C Outstanding lodgments of $1,700
D Un-presented cheques of $1,700



c 

     
 

The following bank reconciliation statement has been prepared by a trainee accountant:

Bank reconciliation 30 September 2002


$
Balance per bank statement (overdrawn) 36,840
Add: Lodgments credited after date 51,240
88,080
Less: Outstanding cheques 43,620
Balance per cash book (credit) 44,460

Assuming the amounts stated for items other than the cash book balance are correct.


  
A $44,460 credit as stated
B $60,020 credit
C $29,220 debit
D $29,220 credit

! Sigma͛s bank statement shows an overdrawn balance of $38,600 at 30 June 2005. A check
against the company͛s cash book revealed the following differences:
1. Bank charges of $200 have not been entered in the cash book.
2. Lodgments recorded on 30 June 2005 but credited by the bank on 2 July $14,700.
3. Cheque payments entered in cash book but not presented for payment at 30 June 2005
$27,800.
4. A cheque payment to a supplier of $4,200 charged to the account in June 2005 recorded in
the cash book as a receipt.
 
  
 "

   #$# %&


A $43,100 overdrawn
B $16,900 overdrawn
C $60,300 overdrawn
D $34,100 overdrawn
c 

     
 


'  
 ( 
%  )*%    
  ++

· To identify entries which have been generated by the bank, but not recorded in the cash
book
· To identify errors in the entries in the cash book

 Linda found the following when carrying out her bank reconciliation:

 

 ,  
% - .( (

· A cheque for $7,523 has been presented at the bank


· A cheque for $560 has been incorrectly recorded as $650 in Linda͛s ledger

Ä You are preparing a client͛s final accounts. You know that the client͛s bookkeeper has correctly
completed a reconciliation of the bank balance in the general ledger to the balance on bank
statement.
The balances from the general ledger and the bank statement are:

General ledger balance $2,358 (credit)


Bank Statement balance $1,053 (debit)
The difference between the two balances is explained by unpresented cheques and outstanding
lodgments.

  +
 
  

A As a current asset of $1,053
B As a current liability of $1,053
C As a current asset of $2,358
D As a current liability of $2,358

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