Question

7) If the balance on the bank statement does not equal the balance in the company's cash account:
A) It is perfectly normal for the two balances to be different.
B) The bookkeeper made a mistake.
C) Both the bank and the bookkeeper made a mistake.
D) The bank made a mistake.

8) A bank reconciliation:
A) Is a formal financial statement.
B) Should be prepared by an employee who handles cash transactions.
C) Is done only at the end of the fiscal year.
D) Is part of a sound internal control system.

9) A cheque cashed by the payee for $3,200 was recorded in the makers accounting records for $320. On a bank reconciliation:
A) $2,880 will be deducted from the book balance.
B) $2,880 will be added to the book balance.
C) $2,880 will be deducted from the bank balance.
D) $2,880 will be added to the bank balance.

10) A cheque for the cash purchase of supplies for $429 was recorded on the books as $339. On a bank reconciliation, this will appear as a(n):
A) Deduction from the bank balance.
B) Deduction from the book balance.
C) Addition to the book balance.
D) Addition to the bank balance.

Answer 1

(7) Right answer is (A) Explanation's It is perfectly nosimal because several reasons are there's (1) Cheques issued but not yet presented for payment in banks (i) Cheque paid indo bank for calleotion but not i 1 yet credited by bank. (11) Cheque paid into the bance for collection but I dishonoured by the bank. (1) Interst allowed by bank. ) Interst charged by the bank on overdraft. Wi) Bance charges and commison charged by bank My Direct deposite by customers into bank. :. Vill) Interst and dividend receiv callected by bapple, il (ix) Direet payment made by the bance on behalf . Of customers, ( Any wrong entory, made by the bance in the pass book. (B) Book Keeper made a mistake It is a I reasons but here it is not applicable. @ Book Keeper made and (e) It is also a reason in above mention reasons. I It is also include on that list. d) It is also a reason that include on lista So here best answer is (A) WESOME

transactions B) A Bande Reconcillation should be prepared by an employee who handles cash . so right answer is (B) (A) It is not mandatory so it is not financial Statement: $0) There are no hard and fast viule to prepation of time, I (0) This is not appropiate reasons.nl so here Answer (B is right here will 3) A Cheque eashed by payee for $3200 was recorded in the marmakers accounting records for $ 320, on Bank Recon Reconcillation $ 9880 I deduet from banc balance. so Right answer is (e). When we t eashier wrongly entred $.320 then banie balance deduet $320. But in dieality to bank balance deduet $9200. so cashier should deduet balance amount Give ( 3200-320) = 2880? deelt deducted from bank balance of cash booke, - 10) Right Answer is CA It is also same reason in above a problem no g. so we deduct from eash book (Bank balance) $ (429- 339) = $90.1" med best ci momen