The following information pertains to Crane Video Company: 1. if cash book opening balance is not matching with passbook is it required to first adjust the opening balance I.e post all the missing transaction. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. - Rs. All the entries in the Cash Book (Bank column) are made by the customer/trader and all entries in the Pass Book are made by the bank. Loans and creditors IV. Deposits in transit, July 31, $1,300. Cash balance per bank, 9/30 : $27,000: Note receivable collected by bank : 12,800: Outstanding checks : 14,000: Deposits in transit : 6,000: Bank service charge A comparison of pass book and cash book revealed the following: - Bank charges Rs. then leave all the os checks as open items The bank … (A) Errors in cash book (X) (B) Errors in pass book (X) (C) Cheques deposited and cleared (D) Cheques issued but not presented for payment (X) Answers: Which of the following is not a cause of difference in balance as per cash book and balance as per bank … Deposits in transit C. Interest earned on the average balance of the checking accounted D. Outstanding checks E. Bank reconciliation The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $25,750 Balance per company records 19,140 Bank service charges 45 Deposit in transit 2,300 Note collected by bank with $200 interest 5,200 Outstanding checks 3,755 a. (b) Interest on overdraft for six months ending 31st December 2006 Rs. (b) His cash at bank decreased by $2,500. We need to do a bank reconciliation to find out why there is a difference. (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. Deposits in transit, July 31, $1,740. (B) It reconciles ending cash balance with the balance as per bank statement. When debit balance is more than the credit balance, it is a debit balance/overdraft as per Pass Book. Deposits in transit, July 31, $2,700.5. For which of the following errors should the appropriate amount be added to the balance per bank on a bank reconciliation? Cash and cash at bank II. July bank service charge not recorded by the depositor $28. Cash balance per books, July 31, $7,284. Cash balance per bank, July 31, $7,773. (ii) Cheques of ₹ 21,600 were issued in the last week of December, but of … Prepare a Bank Reconciliation Statement as on 31st Dec. 2016, showing balance as per cash book: (i) Debit balance shown by the pass book ₹ 17,800. The following information pertains to Lance Company.1. Which of the following item would cause cash per the bank statement to be smaller than the balance of cash show in the accounting records? After receiving the bank statement, therefore, the company prepares a bank reconciliation, which identifies each difference between the company's records and the bank's records.The normal differences identified in a bank reconciliation will be discussed separately. From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008: i. Debit balance as per Cash Book Rs.10,000. From the following particulars, ascertain the bank balance as per Pass Book as on 31st March, 2019 (a) without correcting the Cash Book balance and (b) after correcting the Cash Book balance: (i) The bank balance as per Cash Book on 31st March, 2019 ₹ 40,000. Check #777 written by the company in payment of a debt for $730.10 a recorded by the bank as $701.30 B. 2. The following information pertains to Worthy Video Company. We use cookies to give you the best possible experience on our website. 3. 3,440 Uncredited cheques - Rs. Which of the following is incorrect about the statement of cash flows? Bank collected $1,040 note for Worthy in July, plus interest $42, less fee $26. Following information has been given by Rajendra. Bank statement balance is the cash balance recorded by the bank in bank records. The U.S. money supply is all the physical cash in circulation throughout the nation, as well as the money held in checking accounts and savings accounts.It does not include other forms of wealth, such as long-term investments, home equity, or physical assets that must be sold to convert to cash. (C) It provides information about the operating, investing and financing activities. Two cheques of ₹ 2,000 and ₹ 5,000 were paid into bank in October, 2014 but were not credited by the bank in the month of December. iii. Past experience indicates that 5% of the processors will have some defect during the warranty period and that the necessary repairs and adjustments will cost $150 per defective unit. Cash balance per books, July 31, $7,864. $2,016 collected for Lance Company in July by the bank through electronic fundstransfer. 2 0 0 was not entered in cash books. The ending balance on a bank statement almost never agrees with the balance in a company's corresponding general ledger account. Which of the following would be deducted from the ending cash balance per bank Offered Price: $ 2.00 Posted By: solutionshere Posted on: 02/12/2016 03:03 PM Due on: 03/13/2016 Forest Grove Appliances, Inc. sells food processors for $900 with a 120-day warranty against defects. Prepare Bank Reconcilation Statement form the following particulars and show balance as per Cash Book: (i) Balance as per Pass Book on 31st March, 2018 overdrawn ₹ 10,000. 32. Land and fixtures III. What is Bank Statement Balance? Other information includes: A check for $200 to pay the electric bill was recorded on the checkbook as $20. If the bank statement balance shows negative balance then how it affects Dit entries. Cash balance per books, July 31, $7,364.4. The May bank statement for Accounting Services shows a balance of $6,300, but the balance per checkbook shows a cash balance of $7,980. I. Cash balance per bank, July 31, $7,263. 11. The balance on a bank statement can differ from company’s financial records due to one or more of the following circumstances: An outstanding check : a check that was written and deducted from the financial records of the company but has not been cashed by the recipient, so the amount has not been removed from the bank account. (ii) Cheques issued but not encashed up to 31st March, 2019 amounted to ₹ 10,000. added to the balance per books. Bank balance as per cash book (Dr.) Rs. The net impact of this transaction is that an increase in one asset (furniture) has been off-set by a decrease in another asset (cash at bank). 500. 4. From the following particulars prepare a bank reconciliation statement showing the balance as per cash book on December 31, 2014. July bank service charge not recorded by the depositor $38.3. (A) When Starting Point Is Balance as Per Cash Book: If bank reconciliation statement is prepared with the favourable balance of cash book (i.e., debit balance of cash book) or unfavourable balance/overdraft balance of cash book (i.e., credit balance of cash book), the impact of all transactions on the pass book shall be examined. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. For which of the following errors should the appropriate amount be subtracted from the balance per bank on a bank reconciliation? July bank service charge not recorded by the depositor $34. 2,800 Unpresented cheques - Rs. The revised Balance Sheet will appear as follows.. accounting mcqs for accountant. A. Adjustments to BANK (shown on the left side) are likely the items that are in the company's general ledger Cash account, but they are not yet recorded in the bank's records. Following facts relate to the business of Roshan who requires you to reconcile his Cash Book with the Pass Book balance: Balance as per Cash Book (Cr.) Checks outstanding totaled $260. 200 is debited in the Pass Book. (A) It provides information about the cash receipt and cash payments of an enterprise. 4. Balance as per pass book will be _____ . 6,000. - Cheques amounting to Rs. Balance per bank statement $18,050 Plus deposit in transit 3,250 Less outstanding checks (2,750) Equals ending cash balance $18,550 The effects of the bank service charges and the insufficient funds check are already reflected in the balance per bank statement. 5. The right side is labeled Balance per BOOKS. A cheque for Rs.500 issued in favour of Karan has not been presented for payment. Deposit of $600 recorded by bank as $60. 3. (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. From the following particulars ascertain the bank balance as per bank pass book of Ramnath as on 31st December 2006: (a) Bank overdraft as per Cash Book on 31st December 2006, Rs. (iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500. 2,260 Additional information: (a) Debit side of the Cash Book (bank column) has been undercast by Rs. It also does not include various forms of credit, such as loans, mortgages, and credit cards. Service charges, interest income and NSF (Not Sufficient Funds) checks are entries that result in a discrepancy since these are recorded in the bank statement but not included in the cash … Cash balance per bank, July 31, $7,328.2. Prepare Bank Reconcilation Statement form the following particulars and show balance as per Cash Book: (i) Balance as per Pass Book on 31st March, 2018 overdrawn ₹ 10,000. Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The bank balance on September 30 is $27,395 but according to our records, the ending cash balance is $24,457. 2 5 0 has been dishonoured but not recorded in cash book. The total of assets, therefore, remains unchanged and the Balance Sheet stays balanced. Notice the following items in the condensed bank reconciliation format: The left side is labeled Balance per BANK. 5. 2 7, 4 5 0. 7. 2. Which of the following figures represents the balance c/d for the above account? For each of the following items, indicate whether its amount (i) affects the bank or book side of a bank - Answered by a verified Tutor. ii. A bank reconciliation compares the bank statement and our company’s records and reconciles or balances to two account balances. (iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500. At April 30, Kessler Company has the following bank information: Cash balance per bank $11,500 Outstanding checks $700 Deposists in transit $1,375 Accounting Mcqs. 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