Bank Recs

Question 1

What is a direct debit

Answer 1

Regular payment
Variable amount
Payee in control

Question 2

What is a standing order

Answer 2

Regular payment
Set amount
Payer in control

Question 3

What is a credit transfer?

Answer 3

automatic payment from one account to another

Question 4

What are bank charges?

Answer 4

Bank charges businesses to run account for them.

Question 5

What is an unpresented cheque?

Answer 5

Cheque paid to supplier that is not yet on the bank statement

Question 6

What is an outstanding lodgement?

Answer 6

Cheques lodged into the bank that are not yet recorded on the bank statement

Question 7

Why might the Cash Book balance be different from the Bank Statement balance?

Answer 7

DD, SO, Credit Tranfers, Bank Charges, Unpresented Cheques, Outstanding lodgements

Question 8

BRS topic - why do you tick off everything that appears in both the Cash Book and the Bank Statement?

Answer 8

they appear in both - they are not the problem

Question 9

What do we update the Cash Book with?

Answer 9

unticked items from the bank statement

Question 10

What goes into the Bank Reconciliation statement?

Answer 10

unticked items from the Cash Book

Question 11

How do you deal with a Dishonoured Cheque?

Answer 11

Record in BRS… From CB to BS you would subtract it; from BS to CB you would add it

Question 12

How do you deal with a Query Cheque… you are querying that you paid a cheque?

Answer 12

Record in BRS… From CB to BS you would subtract it; from BS to CB you would add it