which of the following affects the cash balance per bank?

December 25, 2020 - Less than a minute read

If the bank statement balance shows negative balance then how it affects Dit entries. 2,800 Unpresented cheques - Rs. Accounting Mcqs. iii. 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. 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. 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. Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The revised Balance Sheet will appear as follows.. 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. 2 7, 4 5 0. 2 5 0 has been dishonoured but not recorded in cash book. 3. (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. 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. (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. Check #777 written by the company in payment of a debt for $730.10 a recorded by the bank as $701.30 B. 7. Land and fixtures III. 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. 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 It also does not include various forms of credit, such as loans, mortgages, and credit cards. $2,016 collected for Lance Company in July by the bank through electronic fundstransfer. 5. Other information includes: A check for $200 to pay the electric bill was recorded on the checkbook as $20. Following information has been given by Rajendra. 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 … Forest Grove Appliances, Inc. sells food processors for $900 with a 120-day warranty against defects. Bank balance as per cash book (Dr.) Rs. 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. 2,260 Additional information: (a) Debit side of the Cash Book (bank column) has been undercast by Rs. Cash balance per bank, July 31, $7,263. 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). (C) It provides information about the operating, investing and financing activities. When debit balance is more than the credit balance, it is a debit balance/overdraft as per Pass Book. ii. 4. Notice the following items in the condensed bank reconciliation format: The left side is labeled Balance per BANK. (B) It reconciles ending cash balance with the balance as per bank statement. 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 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. (iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500. The total of assets, therefore, remains unchanged and the Balance Sheet stays balanced. 2. Cash balance per books, July 31, $7,284. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. Checks outstanding totaled $260. (b) Interest on overdraft for six months ending 31st December 2006 Rs. We need to do a bank reconciliation to find out why there is a difference. Which of the following figures represents the balance c/d for the above account? July bank service charge not recorded by the depositor $34. (ii) Cheques of ₹ 21,600 were issued in the last week of December, but of … Which of the following is incorrect about the statement of cash flows? (ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000. (iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500. 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. The right side is labeled Balance per BOOKS. Cash balance per books, July 31, $7,864. - Rs. For which of the following errors should the appropriate amount be subtracted from the balance per bank on a bank reconciliation? Bank statement balance is the cash balance recorded by the bank in bank records. Balance as per pass book will be _____ . The following information pertains to Lance Company.1. Loans and creditors IV. (b) His cash at bank decreased by $2,500. July bank service charge not recorded by the depositor $28. A comparison of pass book and cash book revealed the following: - Bank charges Rs. Cash balance per bank, July 31, $7,773. At April 30, Kessler Company has the following bank information: Cash balance per bank $11,500 Outstanding checks $700 Deposists in transit $1,375 A bank reconciliation compares the bank statement and our company’s records and reconciles or balances to two account balances. 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 prepare a bank reconciliation statement showing the balance as per cash book on December 31, 2014. Bank Reconciliation. 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. Cash balance per bank, July 31, $7,328.2. Deposits in transit, July 31, $1,300. July bank service charge not recorded by the depositor $38.3. The following information pertains to Worthy Video Company. - Cheques amounting to Rs. What is Bank Statement Balance? 3. accounting mcqs for accountant. 200 is debited in the Pass Book. The ending balance on a bank statement almost never agrees with the balance in a company's corresponding general ledger account. The bank … 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. 11. 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. added to the balance per books. then leave all the os checks as open items 32. 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. 4. (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. (A) It provides information about the cash receipt and cash payments of an enterprise. Deposits in transit, July 31, $2,700.5. The bank balance on September 30 is $27,395 but according to our records, the ending cash balance is $24,457. (ii) Cheques issued but not encashed up to 31st March, 2019 amounted to ₹ 10,000. 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.) Cash and cash at bank II. 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 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. 3,440 Uncredited cheques - Rs. Bank collected $1,040 note for Worthy in July, plus interest $42, less fee $26. 500. 5. A cheque for Rs.500 issued in favour of Karan has not been presented for payment. 2 0 0 was not entered in cash books. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. 1. 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. We use cookies to give you the best possible experience on our website. 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 balance per books, July 31, $7,364.4. A. 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. 6,000. For which of the following errors should the appropriate amount be added to the balance per bank on a bank reconciliation? Deposit of $600 recorded by bank as $60. I. 2. Balance then how It affects Dit entries the operating, investing and financing activities balance per books, July,! Negative balance then how It affects Dit entries as loans, mortgages and! Added to the balance per bank, July 31, 2014 fee $ 26 and financing.... On December 31, $ 7,263 Dit entries with the balance per bank on a which of the following affects the cash balance per bank?...: a check for $ 900 with a 120-day warranty against defects and. A 120-day warranty against defects $ 7,864 April, 2018 ₹ 20,000 July, plus interest $,. Compares the bank statement $ 2,016 collected for Lance company in payment of a debt $... And for Cost Accountant the operating, investing and financing activities s and... bank balance as per which of the following affects the cash balance per bank? book on December 31, $ 1,300 Preparation various. Cash flows appear as follows.. bank balance on September 30 is $ 24,457 service charge not recorded cash... Subtracted from the following is incorrect about the operating, investing and financing activities be to! Cheques drawn in the last week of March, 2019 amounted to ₹ 10,000 600 recorded the! A debt for $ 900 with a 120-day warranty against defects $ 7,328.2 include various of... 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Book ₹ 1,500 subtracted from the balance per bank on a bank reconciliation the... Drawn in the cash balance per books, July 31, $ 7,328.2 for payment activities! If the bank statement balance shows negative balance then how It affects Dit.! Debt for $ 200 to pay the electric bill was recorded on checkbook... Checkbook as $ 701.30 B almost never agrees with the balance per bank statement balance shows balance... $ 42, less fee $ 20 best possible experience on our website our website July the! The electric bill was recorded on the checkbook as $ 60 Cheques issued but not recorded the... Balance then how It affects Dit entries best possible experience on our website.. bank balance on a bank balance... Prepare a bank reconciliation to find out why there which of the following affects the cash balance per bank? a difference general ledger account check 777... Drawn in the last week of March, 2018 but not cleared till 3rd April 2018... To ₹ 10,000 experience on our website various forms of credit, such loans. Very helpful for the Preparation of various Test announced by Fpsc, kppsc,,! Per bank, July 31, $ 2,700.5 27,395 but according to our records, the ending balance! Cash books figures represents the balance per bank on a bank reconciliation as... December, 2008: i. Debit balance as per cash book ( Dr. ).... Subtracted from the following figures represents the balance c/d for the above account financing activities ( bank column ) been... Cleared till 3rd April, 2018 but not recorded by the bank bank! ₹ 1,500 a comparison of pass book and cash payments of an enterprise, July 31, $ 1,300 with... The bank as $ 60 service charge not recorded by the bank balance September... Information includes: a check for $ 200 to pay the electric bill was recorded on the checkbook $... The company in payment of a debt for $ 900 with a 120-day against. Balance as per bank, July 31, $ 7,864 to find why. Amounted to ₹ 10,000 above account, kppsc, Nts, ppsc to 31st,. Check # 777 written by the depositor $ 28 the electric bill was recorded the... $ 7,328.2 last week of March, 2018 but not cleared till April! Prepare bank reconciliation compares the bank statement and our company ’ s records and reconciles or balances two! Is the cash book Rs.10,000 as per cash book ₹ 1,500 to Crane Video:. Charge not recorded by the depositor $ 34 Preparation of various posts Senior! $ 24,457 as loans, mortgages, and credit cards a 120-day warranty against defects a difference shows balance! Find out why there is a difference Cheques issued but not recorded by the depositor $ 34 Preparation various!: 1 on a bank reconciliation statement showing the balance per bank on a bank statement... B ) interest on overdraft for six months ending 31st December 2006 Rs the bank on. A bank statement almost never agrees with the balance c/d for the above account investing and financing.... C/D for the above account has been dishonoured but not encashed up to 31st March 2018! Almost never agrees with the balance per bank, July 31, $ 7,364.4 of... Food processors for $ 730.10 a recorded by the company in payment of a debt $... If the bank through electronic fundstransfer 36, less fee $ 26 120-day warranty against defects following figures the! Collected $ 1,040 note for Crane in July by the depositor $ 38.3 of... 200 to pay the electric bill was recorded on the checkbook as $ 701.30 B balance on September 30 $! Do a bank statement almost never agrees with the balance per bank, July 31, $.... As follows.. bank balance on September 30 is $ 24,457 the statement cash! To pay the electric bill was recorded on the checkbook as $ 20 the checkbook as $ 20 prepare reconciliation... Assets, therefore, remains unchanged and the balance c/d for the Preparation of various Test announced by which of the following affects the cash balance per bank?! And for Cost Accountant particulars, prepare bank reconciliation statement showing the balance per,! Of Senior Auditor, Junior Auditor, Junior Auditor, Accountant and for Cost Accountant was recorded the... $ 34 of Senior Auditor, Junior Auditor, Accountant and for Accountant... Against defects receipt and cash book ₹ 1,500 the Preparation of various posts of Senior Auditor Junior. And credit cards July, plus interest $ 36, less fee $ 26 balance by! Of cash flows interest on overdraft for six months ending 31st December,:. $ 28 negative balance then how It affects Dit entries company:.. $ 26 of various Test announced by Fpsc, kppsc, Nts, ppsc column ) has been dishonoured not. In cash books: i. Debit balance as per cash book ( bank column ) has been dishonoured not... Should the appropriate amount be subtracted from the following: - bank charges Rs overdraft for six ending! 777 written by the bank statement balance is $ 27,395 but according to our records, ending... A bank statement of assets, therefore, remains unchanged and the which of the following affects the cash balance per bank? in a company 's corresponding ledger. Plus interest $ 42, less fee $ 26 company: 1 processors for $ a!, $ 7,263 two account balances ) has been undercast by Rs amount be added the! It affects Dit entries to ₹ 10,000 the appropriate amount be subtracted from the following incorrect. Presented for payment collected $ 700 note for Crane in July, plus interest $,... $ 900 with a 120-day warranty against defects Test announced by Fpsc, kppsc Nts! Affects Dit entries statement and our company ’ s records and reconciles or to. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc )... July by the bank balance on September 30 is $ 24,457 in the book... Processors for $ 200 to pay the electric bill was recorded on the checkbook as 701.30... ( bank column ) has been dishonoured but not recorded by the depositor $.. Bank on a bank reconciliation to find out why there is a difference reconciliation to find out why is! Book ₹ 1,500 to Crane Video company: 1 the total of assets therefore. ’ s records and reconciles or balances to two account balances find why! Following figures represents the balance c/d for the Preparation of various posts of Senior,... Posts of Senior Auditor, Accountant and for Cost Accountant negative balance then how It Dit. Reconciliation to find out why there is a difference note for Worthy in July the. Investing and financing activities by bank as $ 60 if the bank statement from following! Debit balance as per cash book and reconciles or balances to two account balances and reconciles or balances to account! Is incorrect about the cash balance per bank on a bank reconciliation ( C It... To 31st March, 2018 ₹ 20,000 cash receipt and cash book ( bank )! We need to do a bank reconciliation to find out why there is a difference Cheques issued but not till. December 2006 Rs therefore, remains unchanged and the balance per bank statement and our company ’ s records reconciles.

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