Practice Introduction To Bank Reconciliation Statement (3.1) - Bank Reconciliation Statement

Practice: Introduction to Bank Reconciliation Statement

Lesson 3.1Bank Reconciliation Statement

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10 questions

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6 sample questions

Question 1.
What is the primary purpose of a Bank Reconciliation Statement?
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Think about what discrepancies mean.
Question 2.
Name one common reason for differences between cash book and bank statement.
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Consider what happens to checks after they're written.
3Question 3.
What does the Bank Reconciliation Statement help identify?
- Only errors in the cash book
- Discrepancies between cash book and bank statement
- Only fraud instances
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Think about what gaps need to be filled in.
4Question 4.
True or False: A deposit in transit is money that has been recorded by the bank.
- True
- False
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Consider when you put money in the bank but don’t see it immediately.
Question 5.
Your cash book shows ₹12,500, while your bank statement shows ₹14,000. A deposit in transit of ₹2,000 and outstanding checks of ₹1,500 are present. Calculate the correct cash book balance.
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What adjustments do you need to make to reconcile the two balances?
Question 6.
If an error in the cash book was found showing an extra credit of ₹1,000 that doesn't exist, what will you do during reconciliation?
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Consider how to get back to accurate financial state.

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