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Questions and Answers
What is the total adjusted balance reported?
What is the total adjusted balance reported?
A debit memo increases the cash recorded in the accounting records.
A debit memo increases the cash recorded in the accounting records.
False
How much did Blue Sky Co. add as deposits in transit for the reconciliation?
How much did Blue Sky Co. add as deposits in transit for the reconciliation?
₱205,000
The amount of credit memos recorded is _____?
The amount of credit memos recorded is _____?
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Match the following transactions with their corresponding effects on cash in the bank:
Match the following transactions with their corresponding effects on cash in the bank:
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What is the purpose of preparing a bank reconciliation statement?
What is the purpose of preparing a bank reconciliation statement?
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Bank reconciliations should be prepared on a quarterly basis.
Bank reconciliations should be prepared on a quarterly basis.
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What is added to the balance per bank statement when preparing a bank reconciliation?
What is added to the balance per bank statement when preparing a bank reconciliation?
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What does 'Balance per bank statement, end' refer to?
What does 'Balance per bank statement, end' refer to?
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Credit memos are deductions made by the bank to the depositor’s account.
Credit memos are deductions made by the bank to the depositor’s account.
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The adjusted cash balance is shown in the financial statements as _____ cash balance.
The adjusted cash balance is shown in the financial statements as _____ cash balance.
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Match the following components of a bank reconciliation statement to their descriptions:
Match the following components of a bank reconciliation statement to their descriptions:
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What are automatic debits in the context of bank transactions?
What are automatic debits in the context of bank transactions?
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Which item would be subtracted from the balance per bank statement during reconciliation?
Which item would be subtracted from the balance per bank statement during reconciliation?
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Payments of __________ represents payment of loan made from the depositor's bank account.
Payments of __________ represents payment of loan made from the depositor's bank account.
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A business with multiple bank accounts needs to prepare one bank reconciliation statement for all accounts.
A business with multiple bank accounts needs to prepare one bank reconciliation statement for all accounts.
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Match the following terms with their definitions:
Match the following terms with their definitions:
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Which of these examples qualifies as a credit memo?
Which of these examples qualifies as a credit memo?
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Define 'balance per books' in the context of a bank reconciliation statement.
Define 'balance per books' in the context of a bank reconciliation statement.
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Book errors refer to inaccuracies made by the bank in transaction records.
Book errors refer to inaccuracies made by the bank in transaction records.
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What is a no sufficient funds (NSF) check?
What is a no sufficient funds (NSF) check?
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What are deposits in transit?
What are deposits in transit?
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Outstanding checks are checks that have already been cashed by the bank.
Outstanding checks are checks that have already been cashed by the bank.
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What are the two types of bank reconciling items mentioned?
What are the two types of bank reconciling items mentioned?
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Certified checks are checks that the bank has __________, reducing the depositor's account balance.
Certified checks are checks that the bank has __________, reducing the depositor's account balance.
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Which of the following items is deducted from the balance during bank reconciliation?
Which of the following items is deducted from the balance during bank reconciliation?
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Banks assume direct liability for certified checks.
Banks assume direct liability for certified checks.
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What happens to stale checks in terms of bank reconciliation?
What happens to stale checks in terms of bank reconciliation?
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What is the balance after the deposit on May 11?
What is the balance after the deposit on May 11?
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A check was encashed on May 15 for ₱31,905.00.
A check was encashed on May 15 for ₱31,905.00.
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What is the account type for the account number 8121-0008-48?
What is the account type for the account number 8121-0008-48?
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The beginning balance is ______.
The beginning balance is ______.
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Match the check numbers with their respective amounts:
Match the check numbers with their respective amounts:
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What is the total amount of deposits made on May 10 and May 11 combined?
What is the total amount of deposits made on May 10 and May 11 combined?
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The final balance for the account at the end of the period is ₱881,000.00.
The final balance for the account at the end of the period is ₱881,000.00.
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What date was Check #1111 issued?
What date was Check #1111 issued?
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What is the amount of the outstanding checks for Blue Sky Co. as per the bank reconciliation?
What is the amount of the outstanding checks for Blue Sky Co. as per the bank reconciliation?
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The balance per books for Blue Sky Co. at the end is ₱939,095.
The balance per books for Blue Sky Co. at the end is ₱939,095.
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What is the total amount of deposits in transit for the month ended May 31, 2020, for Blue Sky Co.?
What is the total amount of deposits in transit for the month ended May 31, 2020, for Blue Sky Co.?
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ABC Co. had a returned NSF check amounting to _____ that needs to be recorded.
ABC Co. had a returned NSF check amounting to _____ that needs to be recorded.
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Match the following items with their respective definitions:
Match the following items with their respective definitions:
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What was the cash balance per books for ABC Co. as of November 30, 2020?
What was the cash balance per books for ABC Co. as of November 30, 2020?
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The bank collected ₱640,000 from a customer, comprising ₱600,000 principal and ₱40,000 interest for ABC Co.
The bank collected ₱640,000 from a customer, comprising ₱600,000 principal and ₱40,000 interest for ABC Co.
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What was the amount of credit memos added to the adjusted balance for Blue Sky Co.?
What was the amount of credit memos added to the adjusted balance for Blue Sky Co.?
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Study Notes
Course Information
- Course Title: Fundamentals of Accountancy, Business and Management 2
- Grade Level/Section: ABM-12
- Subject Teacher: [Name not available]
- University: University of the Cordilleras
- Location: Baguio City
Bank Reconciliation Statement
- Purpose: To reconcile cash balances per bank statement and company books
- Objectives:
- Explain reasons for bank reconciliation
- Analyze bank and book reconciling items
- Prepare bank reconciliation statement and journal entries
- Monthly Preparation: Reconciliations are done monthly when bank statements are received.
- Multiple Accounts: Separate reconciliations are done for each account.
- Format:
- Beginning balance per books
- Add: Credit memos
- Less: Debit memos
- Add/less: Book errors
- Balance per bank statement
- Add: Deposits in transit
- Less: Outstanding checks
- Add/less: Bank errors
- Adjusted balance
- Credit memos: Additions to account not yet recorded by company (e.g., collections, interest)
- Debit memos: Deductions to account not yet recorded by company (e.g., service charges, NSF checks)
- Deposits in transit: Deposits made but not yet recorded by the bank
- Outstanding checks: Checks written but not yet cashed by the recipient
- Book Errors: Errors on company books
- Bank Errors: Errors on bank's records
- Reconciling items: Items used to reconcile bank and book balances.
- Book reconciling items: Credit memos, debit memos, book errors
- Bank reconciling items: Deposits in transit, outstanding checks, bank errors
Additional Information
- Payment of loans: Direct payments from bank account
- Book errors: Clerical errors on the company's books
- Bank Errors: mistakes made by the bank
- Outstanding checks: Exclude certified checks and stale checks
- Stale checks: Already recorded and excluded as outstanding from the company's records
- Certified checks are already deducted from the account
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Description
Test your knowledge on the essentials of bank reconciliation. This quiz covers key concepts such as adjusted cash balances, deposits in transit, and the importance of preparing bank reconciliation statements. Perfect for students and professionals looking to refresh their understanding of banking transactions.
