Bank Reconciliation 2

Question 1

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

Answer 1

Credit memos

Question 2

Examples of credit memos

Answer 2

1. Notes receivable
2. Interest earned
3. Proceeds of the loan
4. Matured time deposit

Question 3

Refers to the items representing checks paid by the 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 3

Debit memos

Question 4

Examples of debit memos

Answer 4

1. NSF
2. Technically defective checks
3. Bank service charges
4. Reduction of loans

Question 5

Are collection already recorded by the depositor as cash receipts but not yet reflected on the bank statement?

Answer 5

Deposits in transit

Question 6

Deposit in transit include:

Answer 6

1. Collections
2. Undeposited collections or those still in the hands of the depositor.

Question 7

Are checks already recorded by the depositor as cash disbursement but not yet reflected on the bank statement.

Answer 7

Outstanding checks

Question 8

Outstanding checks include:

Answer 8

1. Checks drawn and already given to payees but not presented for payments.
2. Certified checks - checks stamped with accepted or certified indicating NSF.