Land and fixtures III. What is Bank Statement Balance? Deposits in transit, July 31, $1,300. Deposit of $600 recorded by bank as $60. Bank statement balance is the cash balance recorded by the bank in bank records. (A) Errors in cash book (X) (B) Errors in pass book (X) (C) Cheques deposited and cleared (D) Cheques issued but not presented for payment (X) Answers: Which of the following is not a cause of difference in balance as per cash book and balance as per bank … if cash book opening balance is not matching with passbook is it required to first adjust the opening balance I.e post all the missing transaction. then leave all the os checks as open items 2 7, 4 5 0. (A) It provides information about the cash receipt and cash payments of an enterprise. (A) When Starting Point Is Balance as Per Cash Book: If bank reconciliation statement is prepared with the favourable balance of cash book (i.e., debit balance of cash book) or unfavourable balance/overdraft balance of cash book (i.e., credit balance of cash book), the impact of all transactions on the pass book shall be examined. added to the balance per books. The following information pertains to Worthy Video Company. 3,440 Uncredited cheques - Rs. Deposits in transit, July 31, $1,740. Bank collected $700 note for Crane in July, plus interest $36, less fee $20. We need to do a bank reconciliation to find out why there is a difference. Two cheques of ₹ 2,000 and ₹ 5,000 were paid into bank in October, 2014 but were not credited by the bank in the month of December. (b) Interest on overdraft for six months ending 31st December 2006 Rs. For which of the following errors should the appropriate amount be subtracted from the balance per bank on a bank reconciliation? (ii) Cheques issued but not encashed up to 31st March, 2019 amounted to ₹ 10,000. When debit balance is more than the credit balance, it is a debit balance/overdraft as per Pass Book. (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. (iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500. 500. Accounting Mcqs. July bank service charge not recorded by the depositor $28. Following facts relate to the business of Roshan who requires you to reconcile his Cash Book with the Pass Book balance: Balance as per Cash Book (Cr.) The U.S. money supply is all the physical cash in circulation throughout the nation, as well as the money held in checking accounts and savings accounts.It does not include other forms of wealth, such as long-term investments, home equity, or physical assets that must be sold to convert to cash. The following information pertains to Crane Video Company: 1. 7. Cash balance per books, July 31, $7,364.4. Cash balance per books, July 31, $7,864. 6,000. 200 is debited in the Pass Book. (b) His cash at bank decreased by $2,500. Forest Grove Appliances, Inc. sells food processors for $900 with a 120-day warranty against defects. 11. Cash balance per bank, July 31, $7,773. 5. Other information includes: A check for $200 to pay the electric bill was recorded on the checkbook as $20. 2. Prepare a Bank Reconciliation Statement as on 31st Dec. 2016, showing balance as per cash book: (i) Debit balance shown by the pass book ₹ 17,800. Balance as per pass book will be _____ . Cash balance per bank, July 31, $7,328.2. It also does not include various forms of credit, such as loans, mortgages, and credit cards. Which of the following item would cause cash per the bank statement to be smaller than the balance of cash show in the accounting records? Cash and cash at bank II. The total of assets, therefore, remains unchanged and the Balance Sheet stays balanced. accounting mcqs for accountant. From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008: i. Debit balance as per Cash Book Rs.10,000. Bank reconciliation The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $25,750 Balance per company records 19,140 Bank service charges 45 Deposit in transit 2,300 Note collected by bank with $200 interest 5,200 Outstanding checks 3,755 a. ii. A. Deposits in transit, July 31, $2,700.5. Which of the following is incorrect about the statement of cash flows? A cheque for Rs.500 issued in favour of Karan has not been presented for payment. From the following particulars prepare a bank reconciliation statement showing the balance as per cash book on December 31, 2014. (ii) Cheques of ₹ 21,600 were issued in the last week of December, but of … The May bank statement for Accounting Services shows a balance of $6,300, but the balance per checkbook shows a cash balance of $7,980. The bank balance on September 30 is $27,395 but according to our records, the ending cash balance is $24,457. I. The following information pertains to Lance Company.1. From the following particulars ascertain the bank balance as per bank pass book of Ramnath as on 31st December 2006: (a) Bank overdraft as per Cash Book on 31st December 2006, Rs. Adjustments to BANK (shown on the left side) are likely the items that are in the company's general ledger Cash account, but they are not yet recorded in the bank's records. July bank service charge not recorded by the depositor $38.3. A comparison of pass book and cash book revealed the following: - Bank charges Rs. If the bank statement balance shows negative balance then how it affects Dit entries. (iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500. 3. 3. Cash balance per books, July 31, $7,284. A bank reconciliation compares the bank statement and our company’s records and reconciles or balances to two account balances. Which of the following figures represents the balance c/d for the above account? Check #777 written by the company in payment of a debt for $730.10 a recorded by the bank as $701.30 B. 2 0 0 was not entered in cash books. From the following particulars, ascertain the bank balance as per Pass Book as on 31st March, 2019 (a) without correcting the Cash Book balance and (b) after correcting the Cash Book balance: (i) The bank balance as per Cash Book on 31st March, 2019 ₹ 40,000. The revised Balance Sheet will appear as follows.. 2 5 0 has been dishonoured but not recorded in cash book. Bank collected $1,040 note for Worthy in July, plus interest $42, less fee $26. Prepare Bank Reconcilation Statement form the following particulars and show balance as per Cash Book: (i) Balance as per Pass Book on 31st March, 2018 overdrawn ₹ 10,000. Following information has been given by Rajendra. After receiving the bank statement, therefore, the company prepares a bank reconciliation, which identifies each difference between the company's records and the bank's records.The normal differences identified in a bank reconciliation will be discussed separately. Which of the following would be deducted from the ending cash balance per bank Offered Price: $ 2.00 Posted By: solutionshere Posted on: 02/12/2016 03:03 PM Due on: 03/13/2016 For each of the following items, indicate whether its amount (i) affects the bank or book side of a bank - Answered by a verified Tutor. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. Loans and creditors IV. (B) It reconciles ending cash balance with the balance as per bank statement. The ending balance on a bank statement almost never agrees with the balance in a company's corresponding general ledger account. Deposits in transit C. Interest earned on the average balance of the checking accounted D. Outstanding checks E. 5. Prepare Bank Reconcilation Statement form the following particulars and show balance as per Cash Book: (i) Balance as per Pass Book on 31st March, 2018 overdrawn ₹ 10,000. For which of the following errors should the appropriate amount be added to the balance per bank on a bank reconciliation? - Cheques amounting to Rs. The net impact of this transaction is that an increase in one asset (furniture) has been off-set by a decrease in another asset (cash at bank). Checks outstanding totaled $260. The balance on a bank statement can differ from company’s financial records due to one or more of the following circumstances: An outstanding check : a check that was written and deducted from the financial records of the company but has not been cashed by the recipient, so the amount has not been removed from the bank account. (C) It provides information about the operating, investing and financing activities. At April 30, Kessler Company has the following bank information: Cash balance per bank $11,500 Outstanding checks $700 Deposists in transit $1,375 Cash balance per bank, July 31, $7,263. Notice the following items in the condensed bank reconciliation format: The left side is labeled Balance per BANK. (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. 1. 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