Which of the following is incorrect about the statement of cash flows? Bank balance as per cash book (Dr.) Rs. Deposit of $600 recorded by bank as $60. July bank service charge not recorded by the depositor $34. At April 30, Kessler Company has the following bank information: Cash balance per bank $11,500 Outstanding checks $700 Deposists in transit $1,375 1. 2,800 Unpresented cheques - Rs. Check #777 written by the company in payment of a debt for $730.10 a recorded by the bank as $701.30 B. 3,440 Uncredited cheques - Rs. Deposits in transit, July 31, $2,700.5. 32. Land and fixtures III. 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. 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. (C) It provides information about the operating, investing and financing activities. Deposits in transit, July 31, $1,740. 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. 6,000. 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.) 5. The right side is labeled Balance per BOOKS. A comparison of pass book and cash book revealed the following: - Bank charges Rs. 2. (b) His cash at bank decreased by $2,500. 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. I. (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. Checks outstanding totaled $260. (iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500. The bank balance on September 30 is $27,395 but according to our records, the ending cash balance is $24,457. (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. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. 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, $7,263. We use cookies to give you the best possible experience on our website. 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). (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. Bank collected $1,040 note for Worthy in July, plus interest $42, less fee $26. (b) Interest on overdraft for six months ending 31st December 2006 Rs. The revised Balance Sheet will appear as follows.. Other information includes: A check for $200 to pay the electric bill was recorded on the checkbook as $20. Forest Grove Appliances, Inc. sells food processors for $900 with a 120-day warranty against defects. 2 7, 4 5 0. For which of the following errors should the appropriate amount be subtracted from the balance per bank on a bank reconciliation? - Rs. Cash balance per books, July 31, $7,284. 11. iii. $2,016 collected for Lance Company in July by the bank through electronic fundstransfer. 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. 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? Cash and cash at bank II. 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. 7. (B) It reconciles ending cash balance with the balance as per bank statement. 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. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. Cash balance per bank, July 31, $7,773. 3. The following information pertains to Crane Video Company: 1. 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. ii. The bank … accounting mcqs for accountant. The ending balance on a bank statement almost never agrees with the balance in a company's corresponding general ledger account. 200 is debited in the Pass Book. 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. Bank collected $700 note for Crane in July, plus interest $36, less fee $20. 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. Balance as per pass book will be _____ . Bank Reconciliation. - Cheques amounting to Rs. July bank service charge not recorded by the depositor $38.3. 2. Bank statement balance is the cash balance recorded by the bank in bank records. Deposits in transit, July 31, $1,300. Cash balance per books, July 31, $7,364.4. 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. 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. 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 added to the balance per books. Deposits in transit C. Interest earned on the average balance of the checking accounted D. Outstanding checks E. (A) It provides information about the cash receipt and cash payments of an enterprise. Cash balance per books, July 31, $7,864. From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008: i. Debit balance as per Cash Book Rs.10,000. 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. If the bank statement balance shows negative balance then how it affects Dit entries. 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