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    Bank Reconciliation: Problem 1: True or False

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    Jannelle Salac
    This document contains multiple problems related to bank reconciliation. Problem 1 contains 10 true/false questions about concepts in bank reconciliation. Problem 2 has 10 multiple choice questions testing theory of bank reconciliation concepts. Problem 3 contains 3 exercises - the first involves preparing a bank reconciliation statement and journalizing the related adjusting entries, the second involves proving cash for books and bank. Problem 4 has 10 multiple choice computational questions related to bank reconciliation.

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    Bank Reconciliation: Problem 1: True or False

    Uploaded by

    Jannelle Salac
    688 views5 pages
    This document contains multiple problems related to bank reconciliation. Problem 1 contains 10 true/false questions about concepts in bank reconciliation. Problem 2 has 10 multiple choice questions testing theory of bank reconciliation concepts. Problem 3 contains 3 exercises - the first involves preparing a bank reconciliation statement and journalizing the related adjusting entries, the second involves proving cash for books and bank. Problem 4 has 10 multiple choice computational questions related to bank reconciliation.

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    ANSWER-KEY_CHAPTER-3

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    This document contains multiple problems related to bank reconciliation. Problem 1 contains 10 true/false questions about concepts in bank reconciliation. Problem 2 has 10 multiple choice questions testing theory of bank reconciliation concepts. Problem 3 contains 3 exercises - the first involves preparing a bank reconciliation statement and journalizing the related adjusting entries, the second involves proving cash for books and bank. Problem 4 has 10 multiple choice computational questions related to bank reconciliation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    688 views5 pages

    Bank Reconciliation: Problem 1: True or False

    Uploaded by

    Jannelle Salac
    This document contains multiple problems related to bank reconciliation. Problem 1 contains 10 true/false questions about concepts in bank reconciliation. Problem 2 has 10 multiple choice questions testing theory of bank reconciliation concepts. Problem 3 contains 3 exercises - the first involves preparing a bank reconciliation statement and journalizing the related adjusting entries, the second involves proving cash for books and bank. Problem 4 has 10 multiple choice computational questions related to bank reconciliation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Page |1

    Chapter 3
    Bank Reconciliation

    PROBLEM 1: TRUE OR FALSE


    1. FALSE
    2. FALSE
    3. FALSE – debit memo
    4. TRUE - bank memorandums (debit memos and credit memos)
    require reconciling entries in the depositor’s books
    5. TRUE
    6. FALSE – 100 + 20 CM – 5 NSF = 115
    7. TRUE
    8. FALSE – 30 + 5 -3 = 32
    9. FALSE – as a deduction
    10. TRUE

    PROBLEM 2: MULTIPLE CHOICE – THEORY


    1. D
    2. B
    3. D
    4. D
    5. D
    6. C
    7. D
    8. B – choice (d) is incorrect – “payee” not “drawee”
    9. C
    10. C
    Page |2

    PROBLEM 3: EXERCISES
    1. Solutions:
    Requirement (a): Bank reconciliation
    The bank reconciliation is prepared as follows:
    ABC Co.
    Bank reconciliation - Bank XYZ (Checking account # 10009087)
    September 30, 20x1
    Balance per books, Sept. 30 5,313 Bal. per bank statement, Sept. 30 6,200
    Credit memo : Deposits in transit 2,418
    Collection on note by bank 3,565  
    Debit memos: Outstanding checks (3,100 - 310) (2,790)
    NSF check (1,860)  
    Bank service charge (62)  
    Book error: Bank error:
    Overstatement of collection
    (198) Erroneous debit to ABC account 930
    (1,593 – 1,395)
    Adjusted balance 6,758 Adjusted balance 6,758
           

    Requirement (b): Adjusting entry


    Oct. 3, Cash in bank 1,445
    20x1
    Accounts receivable (1,860 + 198) 2,058
    Bank service charge 62
    Note receivable (3,565 + 155) 3,410
    Interest income 155

    7.Solution:
    Disbursement
      31-Mar Receipts 30-Apr
    s
    Per books 396,600 180,000 36,600 540,000
    ADD: CM
    March 36,000 (36,000)
    April 42,000 42,000
    LESS: DM
    March (10,920) (10,920)
    April 16,020 (16,020)
    Book errors:
    Page |3

    March (27,000) (27,000)


    April 9,000 (9,000)
    Adjusted bal. 394,680 186,000 23,700 556,980

    31-Mar Receipts Disbursements 30-Apr


    Per bank 280,900 191,380 26,900 445,380
    ADD: DIT
    March 46,780 (46,780)
    April 131,400 131,400
    LESS: OC
    March (23,000) (23,000)
    April 19,800 (19,800)
    Bank errors:
    March 90,000 (90,000)
    April
    Adjusted bal. 394,680 186,000 23,700 556,980

    Guide in Checking Problem 3

    No. 1
    Bank reconciliation 11 points (1 point for each correct amount)
    Adjusting entry 5 points (1 point each for each correct debit
    and credit amount in the entry)

    No. 7
    Proof of cash – book 7 points (1 point for each correct amount
    per line)
    4 points (for adjusted balances (1 point
    each)
    Proof of cash – bank 6 points (1 point for each correct amount
    per line)
    4 points for adjusted balances (1 point
    each)
    Total 37 points
    Page |4

    PROBLEM 4: MULTIPLE CHOICE – COMPUTATIONAL


    1. A (25,650 + 5,900 – 750 – 2,000) = 28,800

    2. C
    Solution:
    Per books, June 30 68,757 Per bank, June 30 54,780
    (i) Credit memo (4,500 + 165 - 36) 4,629 (h) Deposits in transit 13,425
    (d) Outstanding
    (b) Dishonored check (14,265) checks (9,885)
    (e) Bank charges (210) (g) Bank error 600
    (f) NSF checks (1,296)
    (a) Book error (4,500 - 3,000) 1,500
    (c) Book error (2,895 - 2,700) (195)
    Adjusted balance 58,920 Adjusted balance 58,920

    3. B (28,000 – 12,000 + 4,000 + 500) = 20,500

    4. B (30,140 + 4,000 – 5,200) = 28,940

    5. C (27,200 + 450 – 700 + 1,450) = 28,400

    6. B (38,000 + 940 – 220 - 90 + 18) = 38,648

    7. D (40,000 – 2,000 + 8,000 + 400) = 46,400

    8. C (54,075 + 9,375 – 8,625 – 375) = 54,450

    9. A (113,000 + 17,200 – 10,800) = 119,400 adjusted balance + 2,400 NSF


    = 121,800 unadjusted balance of cash per book (squeezed upwards)
    Page |5

    10. A
    Solution:
    OC
    12,600 31-Mar
    Checks drawn
    Disbursements 49,700 42,100 (squeeze)
    30-Apr 5,000

    CIB - per books


    31-Mar 34,900
    Collections* 32,400 42,100 Checks drawn
    25,200 30-Apr (squeeze)

    * (Deposits per bank in April of ₱42,700 less ₱10,300 DIT from last month that
    cleared in April) = 32,400

    OR

    Per bank statement


    37,200 31-Mar
    Disbursements 49,700 42,700 Deposits
    30-Apr 30,200

     30,200 per bank - 5,000 outstanding checks recorded in books but


    not yet presented for payment with the bank = 25,200

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