Bank rec & TB, Suspense, Errors

Question 1

What is compared in bank records?

Answer 1

Cash book(bank ledger)
Bank statement balance(bank perspective cr dr)

Question 2

What can be difference while doing bank rec ?

Answer 2

-Unrecorded items in cash book(interest, SO, bank fee,dishonoured chq)

-timing difference(chq/lodgement sent/received but not yet cleared)

-errors

Question 3

What bank balance is posted on balance sheet?

Answer 3

Always revised, cash book balance

Question 4

What is suspense acc?

Answer 4

Temporary account to make TB balance

Question 5

Errors when tb does balance

Answer 5

Omission, wrong account, compensating error, wrong amount, reverse entries

Question 6

Errors when tb does not balance

Answer 6

Single entry, different dr cr, op bal not brought down, extraction error

Question 7

What should be approach to correct ?

Answer 7

1 what should be entry ?
2 what was entry
3 correction jrn

Question 8

Impact of journals on profit

Answer 8

Dr pl. cr bs. - profit decrease