Practice Step 5: Prepare The Reconciliation Statement (3.3.5) - Bank Reconciliation Statement

Practice: Step 5: Prepare the Reconciliation Statement

Lesson 3.3.5Bank Reconciliation Statement

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6 sample questions

Question 1.
What does the reconciliation statement aim to achieve?
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Think about the purpose of reconciling financial records.
Question 2.
Name one component that is added to the cash book balance during reconciliation.
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Consider what amounts might not be recorded in the cash book.
3Question 3.
What is the purpose of a Bank Reconciliation Statement?
- To calculate profit.
- To reconcile cash book and bank balances.
- To evaluate business performance.
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Think about why businesses would check their records against the bank.
4Question 4.
True or False: Outstanding checks should be added to the cash book balance.
- True
- False
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Consider what outstanding checks imply.
Question 5.
A company notes a cash book balance of ₹7,500 and a bank statement balance of ₹9,200. Adjustments include ₹2,000 in deposits in transit and ₹1,500 in outstanding checks, plus ₹400 in unrecorded bank charges. What is the final adjusted balance?
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Break down the adjustments step by step.
Question 6.
If a company consistently finds discrepancies between its cash records and bank statements, list three actions it could implement to avoid future discrepancies.
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Think of preventive measures for accuracy.

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