Bank reconciliation exercise and answers doc
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For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided. Show If you have difficulty answering the following questions, learn more about this topic by reading our Bank Reconciliation (Explanation). Outstanding checks. Bank service charge. Interest credited to bank account. Interest charged to bank account. Deposit in transit. Bank inadvertently charged your bank account for another company's bank fees. Bank erred by posting another company's credit memo to your company's bank account. Fee charged by bank for returned check. A company wrote a check for $76 and it cleared the bank for $76. However, the company recorded the check in its Cash account as $67. How is the difference of $9 handled on the bank reconciliation? A company had a receipt of $989 and correctly prepared its bank deposit slip for $989. However, the company recorded the receipt in its Cash account as $998. How is the difference of $9 handled on the bank reconciliation? The bank collected a Note Receivable for the company and credited the company's bank account for $1,000. A company deposited a check from a customer into its checking account. A few days later the check was returned with the notation "Account Closed" and the bank deducted the amount on the bank statement. __________
Which of the following items will require a journal entry to the company's books? Which of the following will NOT require a journal entry to the company's books? A company recorded its check #2754 in its accounting records as $98. However, check #2754 was actually written for $89 and it cleared the bank as $89. What adjustment is needed to the Cash balance per books? A company recorded its August 15 receipts on its books as $165. However, the receipts were actually $156. The deposit slip for the bank was prepared correctly as $156. What adjustment is needed to the Cash balance per books? Want more practice questions? Exercise 14: Performing a Bank ReconciliationExercise OverviewIn this exercise students will get to grips with the very important task of performing a bank reconcilation, that is explaining the difference between the bank balance as reported on the bank statement and the bank balance as reported in the financial accounts of the business. Exercise InstructionsTo undertake this exercise, you will need to download and print the following documents in Microsoft Word and Microsoft Excel format. Importantly, a template is provided to assist you complete the exercise more easily. The first document provides advice and explanation on how to perform a Bank Reconciliation.
For further explanation go to the web page for Bank Reconciliation Statement. Answer to this ExerciseYou can obtain an answer to this and all other accounting exercises on this website: Obtain answers to exercises Copyright and Disclaimer | About the author Leo Isaac | Email Webmaster What are the 7 steps to bank reconciliation?Bank reconciliation steps. Get bank records. You need a list of transactions from the bank. ... . Get business records. Open your ledger of income and outgoings. ... . Find your starting point. ... . Run through bank deposits. ... . Check the income on your books. ... . Run through bank withdrawals. ... . Check the expenses on your books. ... . End balance.. What is bank reconciliation exercise?In the bank reconciliation process, the transactions recorded in the company's cash book are compared with the bank's passbook to identify any inconsistencies in the day-to-day transactions. In this simple process of tallying the cash book and bank statement, there could be multiple errors.
What is bank reconciliation in PDF?A bank reconciliation statement is a financial statement prepared to reconcile the differences in the balance of the bank column of cashbook and passbook by showing all the causes of difference between the two.
What are the 4 steps in the bank reconciliation?The four steps in the bank reconciliation process is as follows:. Compare the deposits.. Adjust the bank statements.. Adjust the cash account.. Compare the balances.. |
