FA2 Managing Financial Records

Chap 6 Bank Reconciliation Practice Questions

Lecturer: Christine Colon, ACCA

Name:
Group: Date:

1. Edward checked his bank statement with the bank account in his general ledger and found
the following differences :

(i) some lodgements had been recorded in the cash received day book but did not appear
on the bank statement

(ii) the bank debited fees on his account

(iii) the bank debited a personal cheque to his business account in error.

Which of the differences require an entry in the bank account in the general ledger? _

A. (i) only
B. (ii) only
C. (iii) only
D. (ii) and (iii)

2. Your cash ledger account at 31 December 20X3 shows a bank balance of $565
overdrawn . On comparing this with your bank statement at the same date, you
discover that:

• A cheque for $57 drawn by you on 29 December 20X3 has not yet been
presented for payment

• A cheque for $92 from a customer, which was paid into the bank on 24
December 20X3 , has been dishonoured on 31 December 20X3 .

The correct bank balance to be shown in the statement of financial position at 31

December 20X3 is

A. $714 overdrawn
B. $657 overdrawn
C. $473 overdrawn
D. $53 overdrawn

3. Your firm’s bank statement at 31 October 20X8 shows a balance of $13,400. You
subsequently discover that the bank has dishonoured a customer’s cheque for $300
and has charged bank charges of $50, neither of which is recorded in your bank
account in the general ledger. There are unpresented cheques totalling $1,400. You
further discover that an automatic receipt from a customer of $195 has been
recorded as a credit in your bank account in the general ledger.

What was the balance your bank account in the general ledger before correcting
the errors and omissions?
A $11,960

B $12,155

C $13,360

D $13,750

4. The following bank reconciliation statement has been prepared by a trainee

accountant:

$
Overdraft per bank statement 3,860
Less: unpresented cheques 9,160
5,300
Add: deposits credited after date 16,690
Cash at bank as calculated above 21,990

What should be the correct balance per the cash book?

A $21,990 balance at bank as stated

B $3,670 balance at bank

C $11,390 balance at bank

D $3,670 overdrawn

5. Elaine is preparing her bank reconciliation. She has noted the following:

(1) The bank has levied charges on her account.

(2) A cheque payable to S Wright has not been presented at the bank.

Which of the above errors require an entry in the bank account in her general ledger?

A Both (1) and (2)

B (1) only

C Neither (1) nor (2)

D (2) only