Practice Causes Of Differences Between Cash Book And Bank Statement (3.2) - Bank Reconciliation Statement

Practice: Causes of Differences Between Cash Book and Bank Statement

Lesson 3.2Bank Reconciliation Statement

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11 questions

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3 cards from this section. Quick, good the night before a test.
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6 sample questions

Question 1.
Define outstanding checks.
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Think about checks you've written but haven't seen cleared.
Question 2.
What is a deposit in transit?
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Consider deposits made that the bank hasn't processed yet.
3Question 3.
What is an outstanding check?
- A check that has been cashed
- A check issued but not yet presented
- A deposit made directly
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Think about checks that remain uncashed.
4Question 4.
True or False: Deposits in transit can lead to a higher cash book balance than the bank statement.
- True
- False
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Consider timing differences.
Question 5.
A company has a cash book balance of ₹8,000. They issued a check for ₹1,500 that is outstanding and have a deposit in transit of ₹2,500. What is the correct balance you should expect to see in the bank statement?
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Apply the adjustments in the correct order: Start with cash book, subtract the outstanding check, then add the deposit.
Question 6.
If a bank charge of ₹300 is recorded in the bank statement but not in the cash book, and the cash book's balance shows ₹5,500, what will be the correct cash book balance after accounting for the charge?
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Make sure to subtract the bank charge from the cash book balance.

7 more questions in this section. Enroll free to practise them all.