Reconciliation of Bank Statements – lesson 6

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Reconciliation of Bank Statements is a key part of CAT CONTROL ACCOUNTS, JOURNALS and the BANKING SYSTEM course.

You are part way through the CONTROL ACCOUNTS, JOURNALS and the BANKING SYSTEM course and you should have read the pages listed below before reading this page:

Welcome to Reconciliation of Bank Statements

An Accounting Ttainee or Bookkeeper should have a good understanding of a bank reconciliation statement and understand why it should be prepared on a regular basis.

A bank reconciliation statement is basically a fancy word use to tie-up accounting entries in the businesses’ cash book with the entries on the statement produced by the bank. The month end balance on the bank statement rarely agrees with the month end balance on the cash book.




As an Accounting Trainee or Bookkeeper you need to know and explain why there are discrepancies between the cash book and the bank statement. You should be able to explain to the examiner:
-what is meant by a timing difference
-what is an unpresented cheque
-what are lodgements not yet credited
bank reconciliation statement
The Accounting examiner will expect you to have a thorough knowledge of Reconciliation of Bank Statements .

The link to Amazon for the recommended reading on Reconciliation of Bank Statements is:

Now lets test your knowledge of a bank reconciliation statement – go to the test below.

QUIZ: Reconciliation of Bank Statements

Before attempting this quiz you should have read chapter entitled Bank Reconciliation Statements of your recommended textbook “Bookkeeping 2".

Please attempt all questions and then press the submit button at the end, you will then be taken to your results page.

Good luck!



Name


1
A cheque written and issued by a business but not yet shown on the bank statement is called a(n) ....................


2
An amount paid into the organisation's bank, but not yet recorded on the bank statement is called an ..................... lodgement.



3
Unpresented cheques are examples of ................ differences.



4
When the banked statement arrives it must be checked against the cash book and a .................................. statement must be produced.



5
Tick the following items that may appear on a bank statement but then need to be entered in the cash book.








6
When preparing a bank reconciliation statement the first thing the Accounting Trainee or Bookkeeper should do is to tick off the items that appear in both the cash book and the bank statement.


7
A company's bank statement shows a balance of £1400 in the bank. Unpresented cheques total £650. Outstanding lodgements total £300. What is the balance at bank shown by the cash book?


8
A company's bank statement shows a balance of £5500DR in the bank. Unpresented cheques total £1650. Outstanding lodgements total £1300. What is the balance at bank shown by the cash book?









Leaderboard for bank reconciliation statements

1. -27 Points
2. -24 Points
3. -24 Points
4. -24 Points
5. molo-24 Points

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