Bank Reconcilation

Question 1

A statement which brings into agreement the cash balance per books and cash balance per bank.

Answer 1

Bank Reconciliation

Question 2

What is the Solution in computing the adjusted balance per book/ledger?

Answer 2

Unadjusted balance per book/ledger
Add: Credit Memos
Less: Debit Memos
+/-: Errors
Adjusted balance

Question 3

What is the Solution in computing the adjusted balance per bank?

Answer 3

Unadjusted balance per bank
Add: deposit in transit
Less: Outstanding Check
+/-: Errors
Adjusted balance

Question 4

Treatment on error on receipt (understatement)

Answer 4

Added

Question 5

Treatment on error on receipt (overstatement)

Answer 5

Deducted

Question 6

Treatment on error on disbursement (understatement)

Answer 6

Deducted

Question 7

Treatment on error on disbursement (overstatement)

Answer 7

Added

Question 8

items not representing deposits credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipts.

Answer 8

Credit memos

Question 9

items not representing checks paid by bank which are charged or debited by the bank to the account of the depositor but not yet recorded by the depositor as cash disbursement.

Answer 9

Debit memos

Question 10

collections already recorded by the depositor as cash receipt but not yet reflected on the bank statement.

Answer 10

Deposit in Transit

Question 11

Checks already recorded by the depositor as cash disbursements but not yet reflected on the bank statement.

Answer 11

Outstanding check

Question 12

is an expanded reconciliation in that it includes proof of receipts and disbursements.

Answer 12

Proof of cash