Practice Step 2: Add Unrecorded Transactions (3.3.2) - Bank Reconciliation Statement

Practice: Step 2: Add Unrecorded Transactions

Lesson 3.3.2Bank Reconciliation Statement

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9 questions

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6 sample questions

Question 1.
What are deposits in transit?
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Think about deposits that haven't shown up in your account yet.
Question 2.
Why is it important to add bank interest during reconciliation?
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Consider any additional money earned from the bank.
3Question 3.
What is a deposit in transit?
- A deposit not yet recorded by the bank.
- A deposit recorded by the bank.
- A deposit made by a customer.
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Think about what happens after you deposit money.
4Question 4.
True or False: Bank interest should be included in the cash book.
- True
- False
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Consider how banks reward your deposits.
Question 5.
A company checks its bank statement and finds that it shows a balance of $20,000. However, the cash book drafted previously shows $18,500. After reviewing, the following were found: deposits in transit of $1,500, outstanding checks of $1,000, and $250 in bank interest missing from the cash book. Calculate the adjusted cash book balance.
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Break down the adjustments into positive and negative adds.
Question 6.
Consider a scenario where a company received various checks totaling $3,000 that were not recorded yet by the bank, but mistakenly deducted $200 in bank fees. If the company's cash book shows $12,000, calculate the new cash book balance considering the transactions.
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Adjust for fees as negative and add deposits as positive.

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