TOPIC 2, BANK RECONCILIATION STATEMENT

Question 1

THE TWO COMMON CAUSES OF THE
DISCREPANCY IN FIGURES ARE:

Answer 1

1. Time lags
2. Errors

Question 2

Example: A bank statement that ends January 30,
2015 and then the company were able to collect
cash of P20,000 at 5:00 PM. Bank usually closes at
3:00 PM because of this, the cash collected will not
be reflected in the bank as deposit but it is however
recorded in accounting records of the company

Answer 2

Time Lags

Question 3

by either party in recording transactions
Example: A check was issued to Meralco by the
company amounting to P1,000. The company
recorded this as P100. When the check was
presented, the bank paid Meralco P1,000. In the
records of the company it was P100 while in the
records of the bank it’s P1,000. There is in this case
an error that will cause the difference between the
company’s records and the bank records.

Answer 3

Errors

Question 4

wherein the balances per
bank and per book are separately determined.

Answer 4

Adjusted Method

Question 5

wherein the book
balance is adjusted to agree with the bank
balance.

Answer 5

Book to Bank Method

Question 6

wherein the bank
balance is adjusted to agree with book
balance

Answer 6

Bank to Book Method

Question 7

are amounts already received and recorded by the
company, but are not yet recorded by the bank.

an increase to the balance per bank

is on the company’s books, but it isn’t on the bank
statement.

Answer 7

• Deposits in transit

Question 8

are checks that have
been written and recorded in the company’s
Cash account but have not yet cleared the bank
account or presented to the bank by the payee

Answer 8

Outstanding checks

Question 9

are mistakes made by the bank. Bank errors
could include the bank recording an incorrect amount,
entering an amount that does not belong on a company’s
bank statement, or omitting an amount from a company’s bank
statement.

Answer 9

Bank errors

Question 10

are fees deducted
from the bank statement for the bank’s
processing of the checking account activity

Answer 10

Bank service charges

Question 11

is a check that was not honored by the bank of the person or
company writing the check because that account did not have a sufficient
balance.

Answer 11

NSF check

Question 12

occur when a company arranges
for its bank to handle the reordering of its checks. The cost
of the printed checks will automatically be deducted from
the company’s checking account.

Answer 12

Check printing charges

Question 13

will appear on the bank
statement when a bank gives a company interest
on its account balances.

Answer 13

Interest earned

Question 14

are assets of a company. When notes
come due, the company might ask its bank to collect
the notes receivable.

Answer 14

• Notes Receivable